Epiroc Aktie

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

Helena, please go ahead.

Thank you, Karin. So we delivered a strong second quarter, supported by continued high customer activity and a strong demand in mining. Orders received increased 13% organically to SEK 17.3 billion. And organic equipment orders grew 30% and service orders increased 6%. Invoicing was as anticipated, strong in the quarter and increased 11% organically to SEK 16.7 billion.

Our profitability improved further, up 17% year-on-year, translating into an EBIT margin of 19.9% adjusted, which is only the LTI program, the margin was 20.1% compared to 19.7% last year. And the improvement was driven by efficiency measures implemented over recent quarters and high invoicing. Looking more into the details on the orders were up 13%, both in total and organically to SEK 17.3 billion, and the growth was driven primarily by mining, and our equipment orders increased organically by 30%. The large orders amounted to SEK 720 million, and these are mainly brownfield and replacement orders.

Exploration was one of the strongest growing businesses, and this is encouraging as exploration activity is an important indicator of long-term confidence in the mining industry and future project development. And the investment sentiment within infrastructure and construction projects has improved, which led to stable order development. So this is the ninth consecutive quarter in which we have achieved organic order growth, and I remain optimistic also on the pipeline onwards. Business cooking looks strong, and there are many large tenders in which we are involved in. The tenders are mainly within copper and gold and within brownfield and replacement.

We also continue to see encouraging adoption of our automation and digital solutions as customers increasingly integrate these technologies into their operations, our relationships deepen and our position as a long-term productivity partner strengthens.

So let me move on to innovation, an important driver of our long-term value creation. This is why customers choose us. And what is particularly encouraging is that our innovation agenda is very closely aligned with our customers' priorities. So in June, we welcomed around 150 customers from across the world to the Epiroc World Expo, where we showcased how technology can help address some of the industry's most important challenges, deeper mining, lower ore grades, increasing safety requirements and the need for higher productivity. A common theme across many of the solutions we presented was to increase safety. And the best way to increase safety is to remove people from dangerous environments. And we showed our customers that we continue to expand the boundaries of what can be done remotely and autonomously from drilling and rock reinforcement to underground exploration and material handling.

On digitalization, our OEM agnostic digital solutions, collision avoidance, technologies, and advanced analytics help protect people while providing customers with real-time operational insights, helping them make better decisions and improve performance across their operations. Electrification is another area where we [Technical Difficulty].

We are having some technical difficult, but we hope that we will soon be back again. Thanks.

Thank you for your patience. We had some technical problems here in the studio, and now we're back. So I would like to continue on innovation.

So electrification is another area where we continue to lead. And during the Epiroc World Expo, we showcased our growing battery electric offering, including the Minetruck MT66 S eDrive as well as unique and appreciated charging and battery solutions. And finally, we continue also to focus on sustainable productivity, whether through circular solutions, smarter ground support, optimized mine design or advanced service offerings. And our ambition is to help customers produce more with fewer resources and a lower environmental footprint. The strong engagement level that we saw at Epiroc World Expo is very encouraging. So please let me share a video from the event.

[Presentation]

So let me now turn to our aftermarket business, one of Epiroc's key strengths and an important contributor to resilience and profitability.

Aftermarket accounted for 64% of revenues in the quarter with service representing 41% and Tools & Attachments 23% of group revenues. Service orders increased organically by 6%, while Tools & Attachments grew 4%. Demand for our service solutions remains solid, reflecting the value customers place in availability, reliability and operational performance. And I'm confident about confident about our leading aftermarket offering and position both in the short and in the long run. Through our strong local presence and expanding SOEs footprint, we help customers improve productivity and safety while maximizing equipment uptime.

So Hakan, would you mind presenting the financials, please?

Sure, Helena, I would be happy to do so. Our revenues increased 10% to SEK 16.7 billion, and that corresponds to 11% organic growth. We had high equipment invoicing, and it's now 36% of group revenues coming from equipment, which is meaningfully higher than we saw in the previous year. And this is due to that we have successfully ramped up our production after having a quite long period of strong equipment growth. And doing that, our lead times remain at normal levels.

Our EBIT increased 17% to SEK 3.3 billion. That corresponds to an operating margin of 19.9% compared with 18.7% a year ago. Items affecting comparability were minus SEK 33 million, and they are fully related to the share-based long-term incentive program. If we look at the adjusted EBIT, our operating profit increased 12% to SEK 3.35 billion, and the adjusted operating margin improved to 20.1% from 19.7%. And as Helena just mentioned, the organic improvement is thanks to efficiency measures that we have taken in previous quarters as well as a high level of invoicing. It's also worth noting that the impact from tariffs was lower than in the previous quarter.

In Q1, we said it was 0.5 percentage point on the margin. And the lower level now is both because we have taken mitigating actions and also that the tariffs themselves are at an absolute lower level. Currency was a headwind on EBIT, but the positive effect I just mentioned more than offset the currency. So overall, we are pleased to see that our strong execution is yielding results on the bottom line.

And with that, let me turn into Equipment & Service. This was yet another strong quarter, and the orders received increased 17%, all of this being organic to SEK 13.4 billion. Demand for exploration customers was particularly strong with high double-digit growth, while activity in Infrastructure & Construction remained rather stable equipment orders increased by 30% organically, supported by SEK 720 million in large orders. And I would say that the vast majority of orders that we win are from existing customers, that either they replace Epiroc fleet or they expand their current operations. And the mining equipment business is rather sticky and lumpiness of large orders, I would say, it depends more on replacement timing than anything else.

Service orders in the quarter continued to develop well, increasing organically by 6%, reflecting both high customer activity and also an aging fleet. And as shown in the group -- sorry, as shown in the bridge, the growth was entirely organic, and there was no material impact from currency or structure. And then on to revenues and profitability in Equipment & Service business area. Revenues increased by 12% to SEK 12.8 billion. And this corresponds to a 13% organic growth, and the development was supported by continued strong mining activity, high equipment deliveries and solid service growth.

If we look at the mix then, equipment revenues represented 46% of revenue compared to 44% in Q2 '25. So the underlying mix is negative on the profitability. Still, we were able to improve the operating margin 23.1%, which is up from 22.5% in the same quarter a year ago. On the right-hand side on the slide, if we look at it adjusted, the margin improved slightly to 23.1% from 23.0%. The key driver here for the margin improvement is high invoicing as well as efficiency measures that we have taken.

Now moving on to the other business area, Tools & Attachment. Orders received increased here with 3% to SEK 3.9 billion. Organically, the growth was 4%, while currency then had a negative impact of 1%. Demand for rock drilling tools, ground support consumables and other mining-related products remain healthy, whereas demand from construction customers was rather stable. The Tools and detachment revenues increased by 5% to SEK 3.9 billion, and this corresponds to a 7% organic growth, while currency had a negative impact of 2%. EBIT increased by 30% to SEK 488 million, resulting in an operating margin of 12.7% compared with 10.3% a year ago.

If we look at it adjusted, again, on the right-hand side of the slide, EBIT increased by 3% to SEK 488 million, while the adjusted operating margin was 12.7% compared with 12.9% in the previous year. And if we look at the bridge then, the underlying business contributed positively to EBIT, again, supported by efficiency measures that we have implemented and this more than offset then the headwind that we got from currency. The increased input costs for Tungsten, which, as you might remember, impacted the Tools & Attachment margin with more than 1 percentage point in the previous quarter has been mitigated to a large extent. The surcharges to customers as well as the recycling program are contributing positively, and the negative impact is therefore significantly less now in the second quarter.

So moving on to the next slide. Here, we look at the cost and the cost for admin, R&D and marketing, they were higher in absolute terms, but lower in relation to revenues compared to Q2 last year. So in percentage of revenues, it was 16.2% this year versus 17.0% last year. Net financial items came in at minus SEK 130 million, which was almost exactly on the same level as last year when we had SEK 131 million. On the tax side, the tax expense was SEK 760 million, and this corresponds then to an effective tax rate of 23.9%, which is in the guidance we have given of 22% to 24%.

Moving on to the cash flow. Our operating cash flow came in at SEK 1.9 billion, and you can compare that with SEK 1.1 billion in the previous year. Main explanation for the improvement is that we have higher operating profit, and we also paid lower taxes. And when we look at the cash conversion rate, which we do on a 12-month basis, it's now at 93%, which is n line with last year and an improvement from Q1.

Okay. If I then turn into net working capital. It amounted to SEK 24.9 billion at the end of the quarter, which is an increase of 10% compared with a year ago. But as a share of revenues, however, net working capital improved slightly to 37.1% from 37.5% a year ago. So why have we then increased our working capital? Well, it's mainly driven by higher inventories and higher inventories are reflecting then the high activity level that we see in the market. Inventories increased by SEK 4.6 billion compared with last year, but accounts payables increased with SEK 2.6 billion, which is then partly offsetting the inventory buildup that we have.

On the capital efficiency side, our net debt decreased to SEK 11.4 billion, down by almost SEK 2 billion from SEK 13.3 billion last year, and we do have a strong financial position. Our net debt-to-EBITDA ratio is as low as 0.75 to be compared with 0.82 last year. Our return on capital employed was 19.3% it down from 20.2%, which is explained by lower profit. And here, I would like to remind them that these figures are rolling 12 months figures. And sequentially, we actually had the first positive improvement in the return on capital employed for quite some time, and it was up from 18.5% in Q1.

And before I hand back to Helena, I would like to leave you with a bit broader and a more long-term perspective. In June 2018, Epiroc was listed. So it's now 8 years ago, we were listed as a stand-alone company. And since then, I would say that we have proven that we can successfully convert customer demand into profitable growth and strong cash flow generation. So if we look back to 2018, our orders have increased by 80%. But more importantly, we are translating that growth into an even stronger development in earnings and in cash flow. We can see that on the revenues, which have increased by 83%, same as the adjusted EBIT but the earnings per share as much as 94% and the operating cash flow has actually more than doubled since when we were listed 8 years ago.

And we do take extra pride in having an EBIT and an adjusted EBIT that over time are more or less the same, and they are up 8% per year. So basically, what you see is also what you get. And these results are created, thanks to that we have a continuous focus on ensuring we have profitable growth.

And with that, I will hand back to you, Helena on some comments on the outlook and summary.

Thank you, Hakan. And I would like to add a comment then on our success over time. When I ask our customers why they choose us, they very often say that our people at Epiroc make the difference. We are present in remote areas committed to finding a and innovating new solutions to improve their operations. And most importantly, we are there when it counts as a true partner.

So let me conclude by summarizing what has been another strong quarter for Epiroc, we continue to see high customer activity, particularly in mining, resulting in organic order growth of 13% and orders received of SEK 17.3 billion. We also delivered strong revenues, supported by high equipment invoicing and a resilient aftermarket business. Profitability the margin above 20% reflecting both solid operational execution and the benefits from efficiency measures implemented across the group. And continued to strengthen the quality of our business. And in the near term, we expect mining demand to remain high and demand from infrastructure customers to increase somewhat.

Thank you, Helena. Thank you, Hakan. So it's time for the Q&A session. And thank you for your patience earlier when we had the technical issues. We will make sure you will get your questions on please open up the line.

The next question comes from Gustaf Schwerin from Handelsbanken.

I have a few on the Equipment & Service margin. Firstly, if I can ask on the revenue mix within service. If I remember this correctly, you had a fairly high share of parts and kits in Q1 invoicing but at the same time, a pretty high share of midlife rebuilds in terms of how service mix this quarter compares to Q1? That's the first one.

On orders, we have less midlife upgrades in this quarter compared to Q1. I would say on revenue, it was not really that big difference. But on orders received, it's a difference.

Okay. And when we think about the invoicing of those midlife rebuilds you took in Q1, should we expect that to have a negative mix effect as we head into Q3?

Typically, midlife rebuilds are also planned over longer time. So you sell them do it. You don't turn them as quickly as you turn parts and service, the traditional parts and service business. And that part of the business you typically turn in 1 month. Midlife upgrades can be spread out over 6, 7 months, for example. So it's -- I would say it will come gradually. It's not that it would be like the month after we have received the orders.

Okay. And then looking at your equipment sales now, you are pretty much at historical peak levels. So we don't really know what happens on higher invoicing levels. I mean, how much would you say adding another SEK 1 billion in invoicing due to your operating leverage? Or maybe put this way, at what level of equipment sales, do you think it doesn't have a negative mix effect within Equipment & Service?

I think it's fair to say that there will, of course, be a mix effect when invoicing a lot of equipment. But at the same time, the last machines that we deliver, we have very good flow-through in that P&L. So of course, we're growing now very nicely on equipment, but that's also a timing issue because eventually, that will start to generate aftermarket, of course.

Okay. But to push you a little bit, is there a level of equipment sales where you wouldn't see this impacting your margin?

I think that we will not -- I don't think I will comment on that because it's -- that depends totally, I would say, on the type -- what type of equipment you have in that order stock, but there will always be a difference, I would say. I wouldn't say that there will be not the mix effect. There will be a mix effect.

The next question comes from Chit Sinha from JPMorgan.

I have just one question regarding the mining service growth of 6% in the quarter. How does the outlook for aftermarket growth look in the coming quarters? I mean, put another way, can we expect the growth accelerating from here? I'm just trying to contextualize it versus one of your competitors, which has reported double-digit development in this quarter.

Yes. So I think we had higher growth in -- and this can vary between the quarters. As I mentioned, we had fewer midlife upgrades in this quarter compared to last quarter. But the pipeline, of course, with an aging fleet, the potential for midlife upgrade is great out there. So I would say that I don't -- what I read in the aftermarket is that it's high activity levels everywhere now, given the commodity prices and of course, customers trying to maximize, let's say, the production levels.

And if you don't mind me adding here as well, I want to highlight that midlife upgrades are also a very profitable business for Epiroc.

The next question comes from Alex Jones from BofA.

Yes. Can I just follow up, first of all, on the service growth question. I guess, if I average the last 2 quarters, you've done 9%, which is sort of the high single-digit range. we've come to expect in the long term. But one of your peers just talked about sort of upside potential to that given an aging fleet, more advanced machines and digital as well. So should we expect high single digit going forward in service? Or do you see the potential to actually be more in the double digit potentially going forward, including strong spare parts growth, which is what your peer highlighted?

I think we have, of course, our financial target, which is 8% growth. And of course, a big portion of that needs to come from the aftermarket. But as you rightly point out here, with an aging fleet, with more technology in the equipment, our ability to capture customer share is increasing, I would say, as we -- for every quarter that we put more and more technology out in the market. So I would say that -- but high single digit is also -- it requires, of course, a lot of activity to capture that. But of course, the opportunity is there.

And I've said that, I think, many times as well, and we said it at the Capital Markets Day as well, I continue to see one of the biggest opportunity for us to continue to grow the aftermarket business.

Okay. And then just secondly, on large orders, the SEK 720 million this quarter, is that sort of disappointing in the current market environment? I recognize your comments about it being lumpy quarter-to-quarter, but should we think about this being a sort of abnormally low level given that lumpiness and potentially higher numbers ahead? Or given the activity you see in the market, is this sort of a reasonable level within normal fluctuations?

I think it's normal fluctuations. If we look -- we had higher numbers in Q1. So it varies quite a lot between the quarters. But if I look on the pipeline and the size of the tenders that are out, it's fairly big tenders. So I would say it's -- I'm more looking into, let's say, the underlying activity levels, which is also healthy in this quarter. But the lumpiness will always be there depending on when customers take their investment decisions.

The next question comes from Christian Hinderaker from Goldman Sachs.

I wanted to ask again on service orders, I'm afraid. Last quarter, obviously, you had 12% organic growth. You said that midlife was driving that and was above the service growth level. Last quarter was anything single digit? And then as we think about that 6 percentage point deceleration, is there anything else in the service mix that slowed? Or you're saying it's all just the services?

There's nothing else that has slowed. So it's healthy growth in all components of service, but fewer midlife upgrades. And the mid-life upgrades can be a sizable amount as well. So that can, of course, create swings between quarters.

And then as we think about the cost efficiencies, you talked about those being a margin boost. But if I look at your SG&A sums, they're up 5% year-on-year. Admin spend is up 7%, both year-on-year and quarter-on-quarter. Should we think about those savings efforts then as just being on the production side, there ambitions to reduce costs on SG&A? How do we think about that?

Yes. So it's a combination. But what we see in the result is it's a clear improvement in our absorption rates in our factories. Of course, we have been consolidating sites and also been, I would say, working on the efficiency in our production sites as well coverage in our workshops. But there is also, of course, a variable portion in our functional costs, which is very much related to volume, logistics, for example.

So it is a bit of gassing and braking at the same time with this strong order growth that we have, and we need to make sure that we can accommodate everything, while at the same time, we want to make sure we drive efficiency in the back office functions as well. So when we looked at it as a percentage, as we showed in the presentation, yes, it's positive. But we're obviously also looking at it just like you did in absolute terms, trying to be -- make sure we are as efficient there as well.

Maybe a quick housekeeping one, if I can. Can you help quantify the tungsten effect quarter-on-quarter?

Sorry, quantify the Tungsten. Okay. I would say when last quarter we talked about it on the BA leve, and then we said it was more than 1%. I would say, for this quarter, on BA level, it's more or less negligible.

The next question comes from John Kim from Deutsche Bank.

I wanted to see if we could get a little bit more color on what you're seeing in the cadence around exploration CapEx. I think previously, you had spoken to business cooking, healthy pipelines. Could you also comment a bit on speed to FID? Are you seeing any changes in behavior, people speeding up, slowing down, given the various things that have happened on geopolitics in the rest of this year?

So on exploration, we see good activity levels, both on equipment as well as on consumables. If I look on it from a regional perspective, there is a lot of exploration ongoing in Africa, for example, but also in the Middle East, where high activity levels, which is maybe a little bit new areas compared to the traditional mining markets. There's a lot of exploration ongoing close to existing mines, which is more than brownfield exploration or planning for expansion projects.

I do see, when I look at the business cooking map of larger investments that some new countries are establishing here as players in this industry moving forward. We see projects in Argentina for example, that has been there for a long time, but now start to materialize, et cetera. So I would say I do believe that political situation or drives the need for to, say, secure value chains from different directions, of course, in the world. But that clearly drives the need for exploration. And here, we are very well positioned with our, say, total portfolio and our solutions, we have a strong presence here, and we are capturing that opportunity as we speak.

But can you comment at all on speed to decision, FID is getting slower, faster, about the same?

I wouldn't say that -- if I say -- if it's a permitting time you're referring to, I would say that a lot of government are, of course, working towards that to shorten the time from a decision to you actually can start mine. If you can say that generally, that has an impact in the world, I'm not sure I can do that yet. But it's a lot of ambition in that direction to speed for permitting.

The next question from Max Yates from Morgan Stanley.

Could I just ask about your incremental margins in the quarter? So I understand these kind of volatile each quarter, you were at sort of 66% in equipment and services that's kind of fallen close to 30% this quarter. I guess I'm just trying to understand you've been through a period where margins have fallen kind of pretty consistently over the last couple of years. I guess, should we be expecting as you go through a period of kind of cost rationalization that we see sort of above-average incremental margins over the next kind of 6 to 8 quarters?

I'm just trying to sort of think how do we kind of visualize some of the -- or see some of these kind of internal actions, some of the efficiency savings and service, some of the factory closures in the infrastructure business. When we think about actually modeling this, that would be the logical line where I would expect to see kind of above-trend margin recovery over the next 2 to 3 years as the business is growing. So any way you can help us think about that would be helpful.

I think if I look on the Tools & Attachment business or segment, we started, of course, the activities there. And there, we have clearly seen the improvements. And of course, when you look at it from a flow-through perspective, we turned that part earlier than we turned equipment and service. But it's good to see now as a group, we are delivering profitable growth. And as our focus is to make sure that we continue to do that, and we continue to stay focused on efficiency measures.

So it's a solid quarter, but I'm still not happy with the margin. So there is more that we can do, of course. So we don't say we continue to work on our efficiencies. At the same time, as Hakan said, we, of course, need to capture the opportunities. We are growing in a very, very strong way now across the different businesses, but the focus on efficiency is still here.

And maybe just as a follow-up because I kind of appreciate you've said the equipment and service business looks a bit different from a kind of mix perspective. I guess when we think about the margin recovering and the fact that you were at kind of tools and attachment margin levels that on average were 18% in '21 and '22. Do you think as we start to get an infrastructure recovery, those kind of margins are possible again? Or would you also put this division in the category where the mix is just different because of Stanley and even with synergies with Stanley, we shouldn't really be aspiring to het back to those kind of levels. I guess just any kind of framing of how to think about midterm margins and Tools & Attachments?

We were at 18%, as you said, I would say maybe a more -- that was very high 18%. Even one quarter, we were at 19% for T&A, but I think maybe a more normalized margin for that business at that time was around 17%. And if we look then what has changed, the big change is, of course, the acquisition of STANLEY and that the market is where it is.

So -- but Stanley when we acquired them were between 15% and 20% on [ EBITA ] level. And we don't -- if the market comes back, we should be able to get back to that same level for Stanley.

And then we also need a recovery then for our other attachment business. But there's nothing structurally or fundamentally that has changed in the market. So with the market coming back being strong again, we see opportunities to get back to that level. Then, of course, need to take into account the A part then of Stanley.

The next question comes from Edward Hussey from UBS.

Just 2 from me. The first question is just on a follow-up on equipment revenue growth. Obviously, a very strong quarter, but we sort of only saw book-to-bills pick up significantly in Q1, and you usually have lead times of about 9 months in the business. I'm just interested to hear why we saw such strong acceleration in Q2 and why it wasn't a bit more sort of back-end loaded?

Yes. So it takes some time to ramp up. Of course, it's -- because operations where we need to put people in place, train them, et cetera. But we have gradually increased the pace, I would say, throughout the year. But then, of course, you also have the lead time depending on where you ship the machine. So there is also the lead times on sea. So I'm very pleased to see the output from the factories, the ramp-ups are going according to plan, and that generated the strong revenue growth here in the quarter. And we are at the new level of output in the factories. So I'm very pleased with, let's say, how the organization have ramped up and continue to then to make sure that we can safeguard the lead times because that's also crucial in an environment that we are in.

And even though you referred to the order intake in Q1, and that was exceptionally strong, but we actually had quite good order intake also in the second half of 2025. So we didn't start the ramp-up after Q1. We started it, I would say, already during second half of '25 and therefore, able then to at least get part of the strong orders out already in Q2. But like Helena said, with the order intake we've had now for a number of quarters and with the ramp-up in the factory, we expect equipment revenues to continue to be strong into the second half of 2026.

Okay. That's helpful. And then maybe just one other on equipment and service margins. Obviously, now we've seen 2 strong quarters from an organic perspective in the margin bridge. I guess the question here is just that we've also seen inventories picking up, and we've also seen a relatively low gross margin. So I'm just wondering like is one of the strong drivers behind the equipment service margin picking up the fact that factory utilization is much higher. And if that's the case, is it sustainable to keep the factory utilization where it is into the future?

Yes. So I would say that the factory utilization is the expensive part is when you ramp up when you train a lot of assemblers, that's when you take, I would say, the hit. And so I would say that we're performing well now in the factories across, I would say, both on the equipment side, but also on the consumables and on attachment. So -- and then we have this variable way of working. So we -- it's very much additional workforce that we add. which, of course, creates the flexibility and agility. But I'm expecting us to be able to say, have an efficient manufacturing performance during the coming quarters as well.

Okay. That's helpful. And maybe just a follow-up on that. I mean, if you continue to get strong orders through, are you going to have to invest more in manufacturing capacity? I mean like what kind of utilization rates are you at, at the moment in your factories?

Yes. So we're adding shifts. So -- and that's what we have been doing in several of our factories. But we also -- we have a very strong set of dual capabilities, so we can produce the same equipment in several of our manufacturing sites in the different parts. So we're leveraging that work that we have put in place in the last, I would say, 5, 6 years so that we can ramp up in parallel now, both in India, in China, in Sweden as well as in U.S. So I don't see any, I would say, any challenges on the capacity side. It's more to get people on board and train them. And of course, to get the components into the factories. But that's more of a sourcing exercise.

The next question comes from Klas Bergelind from Citi.

So first on the margin in E&S. I mean the 66% drop-through you had in the first quarter was obviously against very little sales growth of 2%. You're now doing around 30% on 13% sales growth and more equipment sales versus service, which is good to see. So it seems like the drop-through is moving in the right direction. I was just wondering on the internal service mix going forward. You obviously have the 6- to 12-month warranty period in parts and kits. So I would assume growth here should accelerate with a lag given the strong equipment orders last couple of quarters. You also talked at the CMD about that you're selling more large machines, advanced machines, so that can increase the customer share. So shouldn't parts and kits, which is the highest margin segment within service increase going forward as a percentage of service? I'll start here.

Given, I would say, the larger the fleet will be, and you are correct, the first year, the machines don't generate that much parts revenue. But when they come into the second year, that's when you start to leverage that strength. So of course, with the strong equipment quarters that we've had, that creates then the potential then for parts revenue in the coming -- and this is not -- it's for several years, of course. It could be 6 up to 10 years depending on the machines we put in the market.

Then on the T&A orders, no dip in comp, but growth is 4%, down from 9% in the first quarter. And it seems like construction didn't weaken quarter-on-quarter and mining is still strong. So what's going on there?

But mining is still strong. I would say more it's -- it can vary between quarters as well. But there is high activity levels in the consumables business, and we also start to see a more positive sentiment towards construction and infrastructure. Infrastructure has been strong, but also towards construction and on the attachment. So higher activity level even though from a low level.

But there is nothing on sort of -- if I understand it correctly, you don't take the Tungsten charge over the revenue line. So there's nothing like that explaining it?

What we said -- I think we said in the Q1 call or maybe it was at the CMD, we said that -- we had very strong tools order intake in Q1. And given that tungsten prices then were ramping up and we had customers with contracts for 3 months, we said that there might be a bit of prebuy. And I think we have seen a little bit of that now in Q2 with a little bit lower level compared to Q1.

Fair enough. My absolute final one is on the T&A margin. So it was more than 1% impact from Tungsten on the margin in the first quarter and no margin impact this quarter. That looks like a bit worse underlying margin improvement year-over-year in the second quarter versus the year-over-year ex Tungsten improvement in the first quarter and currency better quarter-on-quarter. Would you agree with that, that the margin sort of operating leverage was a bit weaker?

Yes, you can say that if you exclude the tungsten impact. But of course, when we compare Q2 to Q2, it's both are, you can say then without. But I understand what you say, and I would agree when you compare Q1 to Q1, yes.

Is that just operating leverage then?

Yes.

And now we will take the last question for today.

The next question comes from Vlad Sergievskii from Barclays.

Two questions, if I may. I'll start with the margin in Equipment & Service. First part of it would be FX rates obviously has been detrimental to margin for 5 quarters. Given assuming current FX, is it possible that Q3 will be a positive contribution to EBIT for the first time in a while? And related to that, on the organic drop-through margin in E&S, about 30% in Q2 despite the fact that mix is shifting towards equipment. Is it a reasonable number for us to target going forward?

If I start with the first one on FX. I think the good thing now with FX is that the comparables are more in line. You see that when we look at revenue and on orders, it's like 1 percentage point differences. The negative thing is that it has actually fluctuated quite a lot during the quarter. So as an example, the dollar versus SEK was down at SEK 920 something, and then it closed at SEK 971, which means we can get some hits on the balance sheet. So -- up and down. So I would argue that if it's more -- if it stays where it is right now and it's more stable, then you will see less of an impact overall in Q3 than we have seen previously.

And then Helena, you take the second one.

Yes. So on flow-through, I think we are pleased to see that we're back to profitable growth and good flow through. Then, of course, if we can vary between quarters, but we continue to focus on our efficiency, as I mentioned here. So -- but we are happy with the performance in the quarter and that we show positive flow-through now in both BAs. So -- but we continue to work on the efficiency. That's a key focus area for us at the same time ramping up then and get as much revenue out as possible.

Thank you, Helena, Hakan, everyone who asked questions. Sorry again for the technical difficulties we had before and enjoy the reporting season. Thank you, everyone. Bye.

Thank you so much.

Thank you.

We are Epiroc. A very warm welcome to the Epiroc Capital Markets Day 2026 here in Örebro. I'm very glad to see so many familiar faces in the crowd, but also many new ones. And to those of you watching the webcast, a warm welcome to you as well.

And for those of you who made a early trip this morning, we promise it will be worth it.

Yes. So if you don't know me, my name is Karin Larsson, and I work with the Investor Relations and media here at Epiroc. And by my side, I have Alexander Apell, Investor Relations Officer.

Next slide. So as you can see on this slide, Karin and myself have more than, around, 20 years in the group. And on the stage today, we have almost 120 years of experience within the group.

That's impressive. And before we go into the content, one thing we always emphasize here at Epiroc is safety. So this is not just a slide for us. This is how we operate every single day.

And today here in Örebro, we have safe emergency exits there, there and over there. And we also have health educated staff in case of emergency.

Yes. So there again, we will start with our CEO, Helena Hedblom, and she will walk you through the group strategy and how we create value, and where we are heading. Then Hakan Folin, our CFO, will take you through the financials and how our strategy translates into performance and cash flow. Then we take a short break.

And after the break, we will go deeper into the business. First Equipment & Service Jess Kindler, then Tools & Attachment with Jose Sanchez. And we will leave, of course, plenty of time for questions. You can ask online throughout the presentation. We will, however, prioritize questions in the room.

Yes. And when -- once we're done with the presentations and the Q&A, the people here tonight, we will walk to the dinner. So you can go to the hotel, leave any luggage if you need to, and then we'll walk jointly to the dinner location.

So, today we'll be repeating strategy, tomorrow will be all about creating memories.

Yes. Today is nice, but tomorrow will be much better. Tomorrow is really when you get to get to experience Epiroc really. We will pick you up at 7:30. Be on time and bring your luggage. And we will experience -- it's not about seeing tomorrow. It's about engaging and you will have opportunities for hands-on challenges where you can interact with our employees and our equipment. So you will feel the performance yourself.

So buses tomorrow, after the tour will depart at 14:45 and 16:45 taking you back either to Stockholm Arlanda or to Eskilstuna to participate in the Volvo Capital Markets Day. You can find the details in your calendar.

So it's time to welcome our first speaker on stage, our CEO, Helena Hedblom. She has more than 26 years in the group. She started out within innovation and rock drilling tools. And after have spent her whole career in the Group, she knows our customers very well.

Yes, she's been traveling the world to see customers for decades. But the thing is today, with technology customers are never far away. So during the presentations today, you will see a lot of interaction between Helena and our customers. Small films, and we really hope that you enjoy them.

Because at the end of the day, everything we will show you today comes down to one thing. How we create value for our customers and how that translates into long-term profitable growth for you shareholders.

Yes. Thank you. Helena. The stage is yours.

Thank you so much. And also from my side, a warm welcome to [indiscernible] to have you all here. I've been in this industry for 26 years and also in this company, we always start with safety. And I would like to start with this accident that happened in Canada last summer. Three miners were trapped, roughly 300 meters underground. And within 24 hours, we managed to bring our teleremote system, and we mounted it on a non-Epiroc loader. And that loader after roughly 60 hours manage to rescue these three workers.

And I think this is a story not only about us as a company. For us as a company, safety is not just a slogan. Safety is real. It also tells the value of OEM agnostic solutions when it matters the most. Because end of the day, the most important things that comes out from a mine is the miner.

So Epiroc, we are -- I usually say we are a 153-year-old startup. We are a leading productivity and sustainability partner for the mining and infrastructure industries across the globe. We have strong focus on innovation, and that has kept us in this leading position for so many years. We have a resilient, strong aftermarket business, roughly 2/3 of our revenues, and that gives recurring income over a cycle.

Customers in 150 countries will today also talk about our footprint, how we serve these customers across the globe, but it's a very diversified customer base. Stable and solid margins. And we have 19,000 passionate employees, many of us, especially in leading positions, we have 20 plus years in the company. And you will meet my colleagues later during the day.

But we have this decentralized organization model that has been supporting us over the years with the person closest to the problem solving in the fastest way.

So if we then look on our performance, we have since the listing been delivering 16.9% CAGR in total shareholder return. We have been growing 8% revenue since the listing and also 8% in adjusted EBIT, and with an industry best margin. And if we look on our financial goals, we have a goal to grow 8% over a cycle. Roughly 2/3 of that growth should come from organic growth, 1/3 roughly from acquired growth. We target to have an industry best margin. Over a resilience in that margin over the cycle to have long-term stable and rising dividends over 50% net profit, and to have an efficient capital structure. And to continuously work on improving our capital efficiency.

And when Hakan will talk more lately or later on the financial performance. But when I look at our performance the last 10 years, and especially since the listing, it's good to see that we have delivered upon our ambition and on our goals. If we then talk a bit about sustainability and our goal sustainability, both for people and planet, we have ambitious goals, both for people and for planet. And if you look on the progress, we have good progress towards the 2030 goals.

In some areas, I would say the areas that we control ourself if we take CO2 emission from operations. For example, or compliance, or building a fossil-free assortment, There, we have very strong achievements year-to-date. Also have good progress when it comes to diversity, when it comes to safety, but there's always more things we need to do, and we continue to do that where we need to push even more in the coming years is to roll out the emission-free products to our customers, and we'll talk more about that, of course, during the day.

Our strategy for profitable growth, it's simple. You have seen this picture before, the ones of you that has followed us over the years. We focus on attractive niches where we can outperform. Very strong focus on being that technology leader pushing the boundaries. Focus on growing the aftermarket, operational excellence and then the foundation being the sustainability and our strong corporate culture built on a decentralized model.

And our strategy is also our investment case. So we focus on the niches where there is a healthy underlying trend for growth. We focus on innovation in the areas where we can accelerate productivity or sustainability for our customers. The more aftermarket we have, the more recurring revenue streams we have, and the less dependent we are on where we are in the cycle of mining or infrastructure. We have a well-proven business model and that has been shown during, I would say, the last 8 years, there has not been easy years in the world. There's been several different challenges. But we have proven that we are resilient in our performance. And the ambition is then to outperform and to create value for our stakeholders.

So our mission is to drive and accelerate the productivity and sustainability transformation for our industry. And hopefully, during today, you will see that it all starts with customers. It starts with their needs, their needs for productivity, for safety, or for more sustainable solutions. And that's how we build our strategy. That's how we create our product road maps and our solutions.

And what do we mean with our industry? It's very -- it's very much hard rock formation. The harder the rock is, the more difficult it is to drill, and to excavate and that's where we are at the best. We have roughly 80% of our revenue towards mining and 20% towards infrastructure. And a big portion of the mining exposure is towards copper, gold and iron. And when it comes to infrastructure, the biggest exposure is towards tunneling, so underground tunneling, but also major civil engineering.

So let's start with deep diving into mining then. Last year, it represented 79% of our orders received. We estimate long-term underlying market growth of 3% to 5% per annum. And now we're talking long term. And our offering, I will not cover it. Hopefully, you know our offering, but we have a very strong position on surface when it comes to surface drilling applications. We have a strong position underground, complete range, underground drills, loaders, trucks, bolting equipment. We have a very strong set towards exploration. I will touch base on that a little bit later. But also then a very strong aftermarket offering towards mining.

And that's spare parts, it's maintenance, it's rock drilling tools, it's rock reinforcement. It's different type of technological solutions, formation, for electrification, for digital, and more and more also solutions than towards the infrastructure customers, but also products that we maybe got from infrastructure that now can be used in mining as well.

Mining is a fascinating industry. It's a huge industry. There are roughly -- more than 5,000 copper, gold and iron mines in the world. And this industry depends heavily on quite few mission-critical machines. If you take a small mine, that can depend on between 20 to 50 equipment. And that is important because that may -- that tells the story of how important, how mission-critical our business is. If you take the largest mine sites, they could be somewhere between 250 and 500 critical heavy mining equipment in that system developing that mine.

So we are exposed to the niches and the products where it matters the most, where performance matters. And when one of these machines down then that's a big -- that's a production loss for that customer. And that means that uptime is crucial, the service of these machines are crucial, and this is why the aftermarket is then so critical, and why we are seen as a position in a mission-critical environment.

Our demand correlates very well with the commodity prices. And here, you see the weighted -- the weighted index of our mineral exposure and our orders. And here you see we have a 83% positive correlation. Of course, short right now, the commodity prices are at a very high level, especially for copper and gold. Short term, that gives increased need for rocking tools, increased need for service because customers trying to keep the equipment up running at high productivity. Midterm, ofcourse this gives an indication of more CapEx. And long term, it also gives the initiative to do exploration drilling, but also expansion projects like greenfield.

And if we look into the fundamentals then of the commodities where we have a high exposure. So 36% of our orders from mining comes to -- or towards copper. And copper are at historical levels, we are very high prices right now. It's, of course, driven a lot by the electrification journey and sustainability journey of the world. And here, we see strong activity levels, both when it comes to expansion, but also when it comes to exploration. And copper is maybe different compared to the other commodities that we serve, since there is a clear long-term gap between demand and supply. So there is clearly not enough copper mines up running to really close this gap. And this is also why we see spend going into expansion towards copper.

Another exposure for us is gold, which is also at very high level. It's 29% of our exposure on the orders received right now. And here, of course, the demand is mainly driven by the jewelry consumption, but also investments and central bank purchases. We see a lot of exploration ongoing right now towards gold, but also expansion projects. And in Q1, we also said that a lot of the large orders we had -- we landed during Q1, they were towards gold.

Iron ore is not maybe at peak levels. It's more at historical average level. We have today 14% of our orders towards iron. But we have a very strong position towards iron. A lot of the iron ore mines, it's big open pit, where we have our surface equipment, and this is where we're very strong position from a market share standpoint, and also where we right now see a replacement happening in several of these mines.

If we talk then broadly about our customers, there are a number of challenges for our customers. We have surface deposits being depleted, customers need to go -- they need to either go deeper in a surface mine, or they need to go underground. It's also the underground mines, they also will have to go deeper. We roughly say that 30 meters deeper every year. That's the average depth of underground mines, how it's increasing. And with depth comes complexity. It comes first of all, lower grades but also more complex ore bodies.

We also see that many of the mines that will come on board in the coming decade. They are also in water stressed areas, or in conflict areas. And it is also becoming more and more difficult to attract labor towards these industries. And that is something where technology really can make a difference. So we focus on solving these challenges for our customers.

And you can see on the lower side here, the utilization, both in underground as well as surface, is still quite low utilization. That means a fantastic opportunity for us to work with productivity with our customers. And automation is one of the solutions that we have been working with now for over a decade in rolling out different levels of automation. From teleremote, up to fully autonomous mixed fleet. Both drills and loaders and trucks. We have today more than 3,900 driverless machines. It has been growing with a CAGR of 17% since 2023. So this part of the business is growing in a very healthy way. And where we are unique is our mixed fleet offering.

And before we jump into the details on innovation, I also would like to show a movie, how to unlock the power, and this is from Antofagasta Los Pelambres in Chile.

[Presentation]

So for us, both to get the most out of each and every machine, so that each and every machine can perform the best. It's also to get a set of machines to work as efficient as possible as what you saw here on the film. But then, of course, to keep the machines up running. And this is where each and every new development that we bring to the market, we increased productivity.

The example you see here, that is one of our electrified machines that gives 11% more tonnage out. So it's not just a switch from diesel to BEV. It's also a productivity improvement.

When it comes to maintenance, there is huge potential, both when it comes to preventive and predictive maintenance. And we see that when we apply these methodologies, we can reduce the downtime by up to 50%. So this tells how important it is to work on both areas, both constantly to drive more and more efficiency for each and every machine, the full system of the machines and then also the uptime of each and every machine.

And then I will move over to service since it is such a critical part of our business. So this represents 41% of our orders, and we have been growing with 9% since 2015. So a good growth story. And here, presence is the thing. We have today, 7,800 service technicians, and they are working many of them on the mine sites together with our customers. They are embedded in their operations. We have 1,200 customer sites with service agreement. We have 300 sites with service contracts where we have labor on site. And we serve also these customers in all these markets with workshops. So we have more than 75 workshops across the globe, and we are constantly building out this network, and then 10 global distribution centers for spares and consumables.

And talking about service. Here, you will see the first discussion I had with Marna Cloete. She's heading Ivanhoe.

[Presentation]

So with Kamoa-Kakula, Ivanhoe has been on a fantastic journey to create one of the world's largest premier mine sites. And in a complex country like DRC. So, what role do you see that Epiroc has played in that journey?

Helena, you and your team at Epiroc has been extremely supportive. From the onset building a new mine, you have to choose the equipment you're going to go with. And without a doubt, we said Epiroc has about the best drilling equipment in the world. So we pursued a relationship with you, and we managed to secure much needed financing in the early days at the Kamoa-Kakula through Swedish government support, and that was really on the back of the quality of your equipment. So it's been a fantastic partnership for us.

So how do you view Epiroc's aftermarket capabilities like service and maintenance in the country?

So your team has been excellent in setting up local hubs. And being able to supply us with critical spares. And it's a complex environment. So it's nice to have people that's on the other end of the phone, people that can visit your site quite quickly to assist when you need assistance in servicing machines and getting access to critical spares. So that relationship with Epiroc has been very meaningful for Ivanhoe mines in general at Kamoa, but also in South Africa and also at Kipushi in the DRC.

Moving over to equipment then. Here, you see the -- our growth since 2015. So we have been growing with 11% per annum on the equipment side. And you also see the split between replacement and a brownfield expansion and now also the greenfield. And if you look on this, of course, majority of the growth we have seen that has been replacement as well as brownfield expansion. But it's also good to see now that the green part of this of the bar also increases. So that is new greenfields. We also have the exploration embedded in that definition. So that sits today at 16%, which is, as you can see, higher than it has been historically.

And greenfield. So greenfield, it's -- this is, of course -- it has always been a cyclical market. It peaked at 2011, 2012. If we look on the total CapEx going into exploration is still not at peak, even though it sits at -- it has been on SEK 13 billion, SEK 12 billion but not at peak level. A big portion, roughly 50% of all the copper is going into exploration goes towards gold, 37% towards copper. So this is roughly 90% and also where we have a high exposure.

And then our offering or exploration, we have, over the years, step-by-step invested in this offering. We have been developed our offering organically, but we've also done a number of acquisitions towards these segments because we believe in this segment long term. Today, our exploration business -- it sits at SEK 3.1 billion. We have been growing with a 17% CAGR the last since 2023. And I have mentioned in several of my quarterly calls that it has been the fastest-growing segment for us. And we believe strongly in this.

And when we look at exploration, we have a complete offering towards exploration now. We have core drilling machines. We have reverse circulation machines. We have all the consumables that is needed for these methodologies, and we have digital components. So strong focus for us to capture the activity level in exploration.

Moving over to Infrastructure then. So Infrastructure represents 21% of our orders. And here, we estimate a long-term market growth between 4% to 6% per annum. And our offering towards infrastructure. We have also a very solid offering here. We have strong position both on underground and surface on drill rigs, but also for underground loaders as well as trucks. We also have ventilation systems. Then we have a full suite of aftermarket products. We have digital products for tunneling, for example. We have, of course, spare parts, maintenance, rock drilling tools and then a very good set now of specialty attachments.

And it all aims at driving safety at construction sites, higher productivity within infrastructure and to lower emissions. And here you see our exposure split between the different types of infrastructure. And to be mentioned here is that attachments is actually used in all these boxes. But the biggest part for us is tunneling, it's underground tunneling, and then we have major civil engineering. But we see a growing trend towards deconstruction and recycling.

And we have been working with indirect channels for many, many years towards this industry. So here, you see me talking with the owner of one of our dealers in U.S. It's Mike Paradis. He is the CEO of Bramco.

[Presentation]

So what do you think about Epiroc offering in general?

I'd say, in general, Epiroc is probably vesting is a class leading manufacturer of not just high-quality products but solutions. When I talk to our customers about the Epiroc offering, they really see the value of the quality of what they're getting. The customers that really appreciate what Epiroc bring are those that value. production, productivity, safety, everything that Epiroc has been focused on in the past few years and decades.

What about our offering for the construction market for you see that?

I see that continuing to be a more important in growing aspect of our business with Epiroc. We've had a lot of customers across our footprint that have migrated to using Epiroc products, both the tools, but also attachment. We want to be partners with those customers that truly see the value of the product that they're getting from Epiroc. We've seen quite a bit of success with that over the past few years.

And how would you describe Epiroc's strength compared to some of the other OEMs?

So it's not just here's your solution, here's your product or whatever. But Epiroc -- and I think part of it is because of the hybrid model you have here in the U.S., you really understand the value of having the right parts available, having the right service technicians available, having trained people having a really good response time. And that's a huge value that we see and that frankly, we don't see from a lot of your competitors. And also I'd say the safety focus and the whole overall safety culture of Epiroc, is much stronger than I tend to hear and see from other competitors and other manufacturers. So I think altogether, that suite that you bring just makes you a great option for our construction customers.

And if we look at the last, I will say, 2 years, of course, the infrastructure segment has been slow for us. But when we look at this long term, we see a lot of initiatives going into rebuilding. If we look on what is happening in U.S., for example, and the plans there when it comes to infrastructure, also when it comes to Europe, especially Germany with the rebuilding of the German infrastructure, both bridges, railways, roads, et cetera. This is where we have -- we are very well positioned now for that uptick.

But also we see that the more spend that goes into defense that also drives the need for some of our products. And of course, a clear trend also towards more and more deconstruction and recycling.

Moving over to engineering then and product development. So we invest roughly 3% in product development that has been the level we have been at for some years now. We have roughly 2,000 engineers across the globe in many different parts of the world. But we're also leveraging the strength, both of our customers, R&D and technology teams, as well as our suppliers' development projects, and we do acquisitions also to gain speed when it comes to innovation. And it's all about digitalization, automation and electrification and having the best machines and the best solutions, and you will have the chance to see them tomorrow in real life. But some words on digitalization then.

So for -- when it comes to digitalization in mining, it's all about connecting people, machines and assets, and to make them work in a transparent way for faster decision-making. And by doing that, you can unlock a lot of productivity potential. In this case, 8% higher output, 50% shorter evacuation time if you have a fire incident, underground, et cetera. Digitalization for us brings us closer to our customers. It gives us higher service penetration and recurring revenue streams.

And when we look at our position, where we are with today, as I mentioned, we have 3,900 driverless machines out running. We have more than 100 systems of the highest level of collision avoidance installed in the world, and more than 3,000 installed systems now on the lower levels of collision avoidance. We have a scalable digital platform. We have done a number of acquisitions that we now have brought together into one digital platform that we now can scale.

I will show a movie now from Hindustan Zinc when I had a discussion with Arun Misra, he is the CEO of Hindustan Zinc, India's largest mining company, and one of the world's largest zinc producer. They have chosen Epiroc to equip their full fleet from all different types of OEMs with our collision avoidance systems. Please play the movie.

[Presentation]

So last year, you and I, we signed a partnership on collision avoidance solutions for your mines. So how is it going? And can you please tell us a little bit about your ambition when it comes to safety and what role collision avoidance can play?

We have been pursuing zero fatality goal for a long time. However, off and on, we had fatalities in the mine, and especially when 900-odd equipment operate in the mine with about 10,000, 11,000 people working in various underground mines. We were looking for the right solution and Epiroc came to our help and being our very trusted partner for a long time. And we signed the agreement last year that we would go for collision avoidance systems.

Already more than 100 people have been given the tags and equipments have been fitted. Extremely happy. Primary reports are all extremely positive. Operators are happy. They are able to locate people anywhere in the near vicinity. And we have just decided to roll it out across all equipment, which may see a very spike in expenditure but it's a very small amount to pay for saving lives of people. And technology-wise, what Epiroc has provided, I believe it is state of the art, and my people are extremely, extremely happy with the quality and also the accuracy with which the entire system works.

So Epiroc has a large production capacity in India, and we are currently expanding our factories there and also building more R&D capabilities in Nashik. So what does it mean for Hindustan Zinc that Epiroc has this local production capabilities and local R&D resources?

So for Epiroc to manufacture in India, it's a great boon to us, not only for a cost point of view. Because, of course, there is an import duty, very high import duty on mining equipment that we import. But also the fact that India is expanding in a big way in critical mineral mining. And most of these critical minerals are deep-seated minerals, so meaning they have to be mining in the underground fashion only. And next maybe 15, 20 years, we'll see a spurt and huge boom in mining in India, requiring hundreds and hundreds of machines. I'm sure that this opportunity will be grabbed whole-heartedly by Epiroc. We have got about 10 new mines. And in the next 5 years, they will all be opening up one by one. And so that might require maybe another 2000, 3000 odd machines in play opportunity.

Okay. Moving over to automation, then I spoke briefly about automation earlier in my present as well. So the automation journey we started a decade ago when we have come far on this journey together with customers across globe. When we look at for customers, of course, it's driven by safety, but also clearly productivity. And it lowers TCO for -- if you include the consumption of diesel, including the drill steel, et cetera. And for us, this brings us closer to our customers. We get even more embedded into our customers' operation. It also increased the stickiness, I would say, with customers. and it gives us higher service penetration. And Jess will talk about that later on today.

And when it comes to automation, we have a unique position because we have OEM agnostic solutions, meaning that we can automate our own equipment but also other OEMs equipment. We can today automate more than 150 different machine types from our peers, or competitors. So that gives us a strength to take on an automation project together with the customer no matter what fleet they have. And as I said, this is growing rapidly. We see today that more and more than 3,900 driverless machines.

And here, our service presence is also crucial. Because with these more advanced systems, of course, service and local presence is key to safeguard the uptime, not only of the machines, but also the uptime over the system itself. And the customer we started this journey with, it's almost 10 years ago, that was BHP in Australia. And here you have a conversation between myself and Sebastian Greco. He's the VP Procurement at BHP.

[Presentation]

So I would like to start with -- to talk about automation. So BHP, you are in the absolute forefront of automation and we began the journey together around automation of drill rigs almost 10 years ago. So can you describe your automation journey a bit and what role Epiroc has played in it?

Epiroc has been a key partner from the outset. Together, we move from early-stage experimentation of these technologies to codeveloping capabilities like object detection, through close collaboration with the factory and with our sort of business planning teams and operations to a mature large-scale autonomous drilling operations. That success obviously, it's underpinned by the strong partnership. I think that we have built together. Common principles and common focus on operational performance and particularly on safety Helena.

So can you describe what, say, the type of benefits that you see in your operation related to productivity and safety?

Safety is the primary driver with automation, reducing obviously, the exposure of our people to high-risk activities and removing them from hazardous environments and creating more control operations. At the same time, obviously enhanced productivity and lower our total cost of ownership, making it a core pillar for the BHP long-term strategy.

Looking ahead, we see this as a high value strategic partnership with a strong foundation and clear opportunities to deep and dive further as we enter into the next phase or the next generation of automation and operational optimization in our sites.

So we have proven autonomy at scale in mining, both on surface as well as underground, and mixed fleet in both underground environment and service environment. And now we're expanding this beyond mining also into quarries and aggregates. So we -- as mentioned here in the movie, we have been working with BHP roughly 10 years to build up the position we have with them on automation. With Newmont in Cadia been working since 2017 on that solution. We have talked about Roy Hill, where we have implemented mixed fleet automation, surface trucks and now we're expanding together into quarries and taking our LinkOA platform together with Heidelberg Materials. We just signed that, and we will now roll that solution out also towards quarries and aggregates. So that's exciting.

Moving over and some words on electrification. If we look on the benefits for customers, it's clear. It's both higher productivity. It's lower emissions. It's lower temperatures. You can reduce the maintenance cost. You can reduce the need for ventilation, et cetera. And the benefit for us is, of course, to stay in the leading position in the niches we are in, but also that we strengthened the partnership with customers. More advanced machines requires more advanced service, and this is where our technicians make a difference. And we get higher value out from each and every machine if we look on this consolidated. And of course, it also gives recurring revenue streams across the full equipment lifetime.

And as you can see on the -- with the numbers here, it's not all about reducing CO2. And I think this is important. It's all about driving productivity, lower TCO and, of course, lower energy cost. And we have a very strong offering towards these industries when it comes to electrification. We have the electrical infrastructure capabilities. We can do retrofit, and we have roughly 43% of our assortment ready in some type of fossil free version, but it's yet only 3.8% of our revenues, meaning that this potential is still ahead of us. We have today 40 sites with BEVs up running. 40% of these customers have replaced recurring orders on us, and this technology is proven. So we are busy helping our customers to scale this in the coming years. But we are convinced that fossil free versions and being it BEV, being it cable electric machines, hybrid machines, et cetera, will be the solution for this industry.

We have a couple of very interesting projects ongoing right now, but one that is ongoing here in Sweden, where we have proven really good outcome when it comes to performance is together with Boliden and ABB , where we have a battery truck with a trolley system. And this is a large truck, and that's why we have a trolley system then because the ramp is long. This is a 5-kilometer ramp. And as you can see on the productivity numbers here, this is massive improvements, 50% higher ramp speed. That means 23% higher productivity. And 126 tonnes more transported per shift. If you turn this into money, this is massive for a mine. So there will be different solutions supporting the electrical journey here. And we also see, at the same time, then lower maintenance cost for - and this is the Boliden case, so 25% lower maintenance cost for them.

So if we talk about the market in general, and we'll zoom out. This market, the markets where we are in, both mining as well as infrastructure. They are served by a few number of high-end peers. It's high barriers to entry. This is not so easy. It's not easy applications. And the buying criteria for our customers, and that's general. The buying criteria is not price. It's total cost of ownership. So the cost for the equipment through its lifetime. And this is where we make the true difference.

And this is also what creates the stickiness to our customers and, of course, something that we build on. So a lot of the strategy that I have presented, but also what Jess and Jose will present is toward creating that stickiness and to protect our very, very strong position towards these customers.

I will say some words on some key markets for us. China is, of course, a very important market for us. We see China as a whole market. We have been in the country for many, many decades. We have a strong presence. We have full capabilities in China with product development, several manufacturing sites. So we're leveraging the agility and the performance of the Chinese supply chains fully. We have also the last, I would say, 3, 4 years, developed a multi-brand in China. It's called GIA, where we're capturing -- so we have a tiered offering in China, where we're capturing also the more value segment. in China with a completely separate R&D and separate sales channels. We are following the Chinese customers when they go abroad. And we do that business from China. So we have customer centers representatives from China placed then in the different parts of the world as key account managers in Zambia, in DRC, et cetera. So for us, China is an extremely important market and the Chinese customers is extremely important.

Today, we have 900 employees. It represents 4% of our revenue. And we are step-by-step investing and building more and more capabilities in China. And here, you will hear some words from Lin Pusheng, He is the CEO of Dazhong Mining , which is a long-term partner for us in China.

[Presentation]

Epiroc has been active in China for several decades now. And today, we employ around 1,000 people at several sites in China. We have several manufacturing sites in the country as well as an innovation center. So we consider China as a home market for us. So how important is it for you to collaborate with a long-term industrial partner with deep local roots in China?

[Foreign Language]

So do you have a famous memory working with Epiroc?

[Foreign Language]

Moving over to India, then India is also a key market for us, and we see this also as a home market. We have had a strong presence in India for decades. It represents 3% of our revenues. But as you could hear from Arun Misra as well, there are plans to expand the mining industry in India. And of course, it's rapidly growing infrastructure country as well.

Our focus in India is to leverage the capabilities of producing strong supply chains, but also the engineering capabilities in India. We have today 2,000 employees in India. We have a large engineering center in Bangalore. We have factories, and we are expanding these factories. We did it last year, and we're taking another step during this year as well to build even more capacity in India to be able to both, of course, supply this industry needs in India from infrastructure as well as mining, but also to use India as a global hub to produce for Asia.

But there are a lot of potential in the world. There's a lot of projects ongoing. It's a high activity level in Chile, Peru and Argentina. This is more mature markets for us. But as we have said, we are early on in investing then in workshops in these countries to make sure that we will be there when the projects kicks off. There's also a lot of projects and expansion plans in both DRC and Zambia. We have a strong presence there as well, but this is also where we are investing in more capacity, more workshops.

Saudi Arabia as well to measure we have a presence in Saudi Arabia already, but impressive plans to become a mining nation as well. And then we are early on investing in these countries to capture the growth opportunities for the future.

And one, this is new, we have not presented this before, but we have over many, many years, been using a multi-brand approach. So of course, Epiroc being our main brand and our premium brand, but we have also over the last 6, 7 years built up comprehensive offering for multi-brand. And this is to be able to capture a broader share of the customers and to be able to play with different value propositions depending on the end customer.

So here you see GIA as an example, this Chinese multi-brand, but also other brands that we are working with in parallel.

So I will close my presentation with a statement. For decades, innovation and global presence have been at the heart of Epiroc. And it's what -- it's the same combination that will continue to drive our growth and define our future. So thank you, and we will see a movie on this.

[Presentation]

So thank you, Helena. It's time for our next presenters, but I got some questions about the WiFi. So [ conventum ] wifi, and then the password is [ conventum ] with small letters.

So next presenter is Hakan Folin, my manager, and he is really showing the decentralization and accountability works in this company. Thank you, Hakan, for your trust. You have been 5 years in this company, and you have adopted well to our culture. So it's a pleasure to have you presenting next. Thank you.

Thank you very much, Karin, and thank you, everyone, for joining us here in Örebro today. I will start talking about outperformance and outperformance for us is really the result of the actions that we are taking.

We have, since Q1 2018, we have grown our orders by 83%. We have grown revenues and EBIT by around 90%. We have grown the operating cash flow by 80%. And then last but not least, we have grown our EPS, or earnings per share by close to 100%. And this outperformance is really driven by a well-proven business model where we combine our share of direct sales around 80% with a strong aftermarket, we have 66% of our revenues coming from aftermarket and also with an asset-light manufacturing setup. And this gives us flexibility, resilience and strong margin.

And importantly, this model, based on decentralization and innovation. It's been refined for decades, first when we were part of Atlas Copco, but now for the last 8 years then as Epiroc Group. So before I dive into the numbers, I will provide you an overview of how we report.

So we have 2 business areas. We have 3 revenue streams, and we have 8 divisions. And the key strength is our revenue mix where 66% comes from aftermarket. And this is a combination of service, including digital, which is around 40%, and then also the Tools & Attachment business. And this high portion of aftermarket revenues, it creates good visibility for us, strong margins and also lower cyclicality.

So I will go through our financial goals and start with our goal on revenue. And here, our target is that we should grow by 8% per year. As you can see here, and this is from 2015, which is where we first have official Epiroc number, we have actually grown them with this 8% on average. Revenue growth is, however, not a straight line, and it will never be, and we will not chase growth at any cost every year. We want to protect the ability to grow over many years. And in this graph, you can see 2x where we've had the revenue decline. First in 2020, when we were hit by COVID. We stayed focused serving our customers all around the world. And I would say that was rewarded later years, which you can see them through our service growth.

The second decline then. It came from two factors. One is the decline in construction demand and also then the stronger Swedish krona, which had an impact on our reported revenues, which you see then in '24 and '25. So I mentioned then that the construction market weakened and how much did it really weaken them?

You can see here that from the peak in 2022, up until Q1 2026, rolling 12 months, orders from infrastructure was down 22%. And the attachment business was especially impacted by this, and we have responded with cost actions, efficiency improvement and improving our flexibility in our operations. And you can see the result of this now on the bottom line for the attachment business.

Another positive thing is that the destocking phase that started taking place from the second half of 2023. Our view is that, that was basically finalized in Q4 2025, which means that we now have a fairly positive outlook for demand for attachments.

On the margin side, our financial goal is to deliver industry-leading operating margins with a strong resilience across the cycle. And on this graph, you see exactly that. It's a business with limited margin adjustments. We have low so-called one-offs, and that gives you a very transparent earnings profile. And I would say that over time, we have built a model that delivers high profitability. The recent margin decline you can see it's basically due to three factors.

One is acquisition, and that's roughly half of it. Then it's the weaker construction market that I was just talking about. And then thirdly, it's also a change in revenue mix, where we have a lower share of attachment and service, but actually also mix within service, where we had stronger growth in some areas where we have a bit lower margin.

So if we look into the details then and to your right then, you can see the Tools & Attachment. And here, demand decreased first and so did also the margins, as you can see. So we've taken -- we started taking actions here earlier, and you can also see actually on the bottom of this slide. Here is the flow-through and where from Q1 2024, we have started seeing positive organic flow-through in our attachment business.

For Equipment & Service, the margin decline came later, mainly explained by acquisitions, as I mentioned before, and also the mix. We have taken actions here as well, improving our service efficiency, working on our production footprint optimization. And in Q1 2026, we were back at organic flow-through also for our equipment and service business. So we're not standing still. We are working with small pinpointed measures without too many complex saving programs. After all, we're still in a growth mode, and we want to make sure that the savings that we do, they actually protect profitable growth over time.

And over time, I will speak about long term now as well because cycles don't disappear, they repeat. Our job is not to predict them, but it's really to make sure that we are ready when they come. And what you see on the chart here is it's Atlas Copco construction mining technique and mining and rock excavation technique. It's not the perfect measure of Epiroc as of today. But I think it's good enough to show the long-term determination of this company.

So what you can see is that margins have shown a clear upwards trend over decades despite cycles and despite volatility. And the key message is that we recover quickly after downturns and we reach higher levels over time. But we don't want to have growth at any cost. We don't want to have margin at any cost either. So for example, we won't cut in R&D short term just to improve the margins. What we want to have, we want to have a balanced delivery on margins, returns and cash. So for us, performance is not about the peaks. Performance is really about continuous improvement over time.

Another goal is on the capital efficiency side. We delivered strong return on capital employed, while we continue to invest in growth. The decline in return on capital employed, as you can see here, is mainly because increased cash and also acquisitions because the acquisitions we have made will generate intangibles on our balance sheet. And in terms of acquisitions, we have made 30-plus since the creation of Epiroc in 2018, and they have, in total, been around 14% of -- sorry, not 14%, SEK 14 billion of revenues.

What has been very strong over time is the growth in equipment orders. It's been 11% per year since 2015. And our equipment is made to order. So as growth accelerates, working capital will also increase. Also the regions where we have seen the most growth over the last few years are in far away markets, remote areas. And that has led to somewhat higher lead times and inventory levels. And that's not only for equipment, but it goes just as much for our spare parts and for our tools. And for us, focus is not on minimizing working capital, but focus is rather on making sure we have the right working capital for the current working conditions.

So to produce the order, it has its advantages. We produce only the core components where we want to safeguard our own innovation, and we want to have a manufacturing -- flexible manufacturing setup. And actually, as much as 70% of the product cost for equipment that is purchased from our suppliers. And it enables us to be fast, both up when demand goes up, but also to adjust cost when demand goes down. It also results in quite low CapEx needs. We have said our need is between 2% to 3%. Actually, if you look for the last few years, it has been lower than that. But as we heard Helena talk about before, we are looking to expand more in growth markets now in the coming few years.

Now I'm going to spend a little bit of time on service. Service is a key driver for us, both when it comes to profitability and also cash generation. As you can see, service orders have been around plus 9% per year over time and really demonstrating structural growth and resilience across cycles. We have actually achieved consistent organic service growth over time. The majority of the years being above our target level, but actually all of the years being positive. And from a financial perspective, this is very attractive because service deliver high margin, strong recurring revenues and robust cash conversion. So service is not only growing, but it's really increasing in the quality, the resilience and the cash profile of Epiroc Group.

And more details on the cash then. We have a high and strong cash generation despite the strong equipment growth that I just told you about. And actually, since 2015, we've had a cash conversion rate of over 100%. Recently, we are around 88%. We have a mindset that every krona in the result counts and as much as possible of that should be converted into cash.

So the next financial goal is to have an efficient capital structure and the flexibility to make selective acquisition with a goal to maintain investment-grade rating. And we do that, our rating is BBB+ with a stable outlook from Standard & Poor's. And I would say that this rating level is fairly comfortable for us. We have the possibility to make acquisitions without being too tied up by financial metrics. Over time, our net debt-to-EBITDA level has been at 0.35, which I would say, a very low level. We are now at 0.7. And even though it's obviously clearly higher than where we've been, we're still at a comfortable level. And we have flexibility to invest both organically and through acquisitions. And we continue to add capability through M&A.

When we look at M&A, we have three criteria's. First of all, stand-alone attractiveness. So is this target attractive and well performing in itself. Second, we look at strategic fit and synergies with Epiroc. Does it support the core business strategy of Epiroc? And then thirdly, does it have the potential to become or remain #1? Does it provide a path to undisputable market leader? And our target areas right now, we look into complementary core. We look into the aftermarket business and we're looking to the digital business.

Since becoming Epiroc, we have acquired more than 30 companies bringing in a broad set of technologies and capabilities. And like every business we do, we have three stages, which you see here on the slide.

First is stability. This is really about ensuring predictable operations, strong process, high-quality, reliable delivery, and if I simplify it, no surprises when it comes to deliveries and financials. The second stage is what we call profitability. So once the business is stable, focus shifts to improving performance with it -- in its current form, using operational excellence to give better profitability. And then thirdly, we are in the growth stage, but this is only when we have the two first stages in place. Growth can then come both organically or through acquisition. It can be about expanding capacity, footprint or offering, but it's always under controlled and profitable level. And the key principle with this is that you need to earn the right to grow by first having your stability in place and then having your profitability in place.

And if we look at the acquired companies, they are in all three of these boxes. We still have a number of acquired companies in the stability portion. They are small and mainly they are part of the digital portfolio, but a low portion of the acquired revenues. Then we have some in the profitability, and we also have some in the growth path, not as many, but with a higher amount of revenue.

One such example is R&T, the mixed fleet automation solutions company. So overall, looking at this, I would say it's a quite well-balanced portfolio where we see a lot of potential value creation ahead of us.

Okay. Next financial goal then is to provide long-term stable and rising dividend to our shareholders, and the dividend should correspond to 50% of net profit over the cycle. And we have basically three priorities when it comes to how we use our cash. The first one is we want to invest in our organic growth. The second is we want to invest in acquisitions. And the third then is to give return to the shareholders according to the target I just mentioned.

And you see in the graph, the dividend we've been paying out and also what payout ratio we have -- we've had over the years. And the average of this is 51%. So i would say we are fully in line with our financial target when it comes to dividends since the creation of Epiroc. For 2025, we will pay out the dividend -- or we are paying out the dividend of SEK 3.80 per share or in total, SEK 4.6 billion.

So to conclude, we aim to generate an annual growth of 8% per year. And if you do the math from where we are right now, 8% per year would give us SEK 100 billion in revenue by 2031. It's, of course, hard to predict where the industry-leading margin will be in 2031, but you can be certain that we will make our utmost to make sure that we are the one with the best industry leading margin.

So some final words. We don't promise perfection quarter-by-quarter. We promised discipline, transparency and cash generation through the business cycle. So thank you very much from me.

Thank you, Hakan. Well done. So I know the energy in the room is high because everyone is awake and eagerly writing on their laptops. But maybe online, you would deserve a break. So we will take a 20-minute break. And here in Örebro, Sweden we will serve coffee and some suites outside, and we will see each other again 10 past 4:00 local time. Thank you.

[Break]

Okay. So welcome back. I hope you enjoyed some fika. Now it's time to discuss a deep dive into the business areas. And as you know, we have two business areas. We have Equipment & Service and Tools & Attachments. And we did this business area organizational setup, 1st of September last year. And this is to even more -- be more focused in leveraging the full scale of our total offering for both business areas.

And with me today, we have both Jess Kindler, and Jose Sanchez, I'm super happy to have them in the team and then we'll now present the different BAs and the strategies moving forward.

So first out is Jess Kindler. Jess, he has several -- many, many years in the group as well. Welcome up Jess. And we have been working together for, I don't know, now 20 years almost. So we know each other extremely well. But he has also been in many different roles in the company. As you can see on this slide. He has also traveled -- lived abroad and traveled extensively, and we have met now the last 6 months in many different parts of the world already. So the show is yours. So go ahead.

Okay. And with the bang, Equipment & Service. I'd like to cover a little bit historical performance. I know Hakan and Helena already covered quite a bit of it, but I'll walk you through just from the Equipment & Service business area itself.

So after a few strong years there after we launched Epiroc, really driven by the services business and the help from the U.S. dollar, we kind of peaked at margin in Q2 2022. And now it's come down a bit. Hakan mentioned, a lot of it is this acquisitions. We were quite acquisitive even back then as we started Epiroc. And it's always tough to find the same level of performance in the acquisitions when we bring them on. So we see that almost every time.

But the last few years, we've done a lot of activities like Helena mentioned. Manufacturing operations, looking at where we can do rooftop consolidation and looking at where we can be the agile company that we normally are. Some other good things, though, that we've done in the last couple of years is dynamic pricing and service. We've continued that kind of service agreement journey that started with the service division almost 10 years ago. And then more automation. And then with this more automation, you see this higher attachment rate. Of course, the more complicated the agreements become, the more sticky we become with the customer. So we like developing that business a lot.

And in Q1 2026, we reported the margin of 24%, even despite lower revenues. So it's an achievement and it's definitely a proof of the actions that we took the last few months. Okay, so I'm going to start off with the equipment.

So our strength really is the breadth of offering. Like Helena mentioned, we have one of the most diverse and complete portfolios when you look at surface and underground equipment portfolio. And then we, of course, have stayed in exploration and invested in, and grown that as another leg for the surface and underground. And the most important of all of this is, of course, this is supported by the aftermarket and the service division, both the consumables side that Jose is going to talk to you about, plus the services side on my side, plus the technology kind of adding one more leg there.

And then we'll go through some achievements since the last Capital Markets Day. So we clearly strengthened our leadership in autonomous drilling. We were sort of the first ones there, and then we were the first ones to get the most complete offering out there. The most, let's say, robotic machine that's out there. And today, it's deployed globally. So Helena is right. We've seen each other in some really faraway places and a lot of those faraway places, they go for automation, even if even if labor is quite cheap there, they go for that automated solution just because the productivity is so high, and maybe it's tough to get people out of those remote job sites.

We've secured our largest electric drilling order. So that was the Fortescue order that Hakan highlighted, SEK 2.2 billion, so a great achievement down there, really showing that, that electrification type is real. It's driven by economics, and it's definitely accepted in a main mining market like Australia. And again, this is not about just about machines in the Equipment division, but it's really about getting all the machines to talk to each other on the same system.

So again, we started that OEM-agnostic journey almost 15 years ago. And now all of our own machines talk the same language, plus all these machines on that third-party system through our LinkOA platform. And I think it's really powerful because I don't think we go to too many mine sites where there's just one brand of drill out there. There's multiple brands out there, and it's important that if you're offering automation or you're offering electrification, you make it work on all those solutions on the mine site.

Okay. This is my favorite slide. So I might get too excited. Drilling is my favorite. I mean the whole reason why Epiroc is in drilling is, nothing else on that entire mine site moves until you have broken rock. So to break the rock, you got to drill a hole, and then you got to put explosives and set it off, right? So if something happens with the drills, it's quite a significant emotional event on the mine site, and you do everything you can to get that drill back up and running, so you have broken rock to feed the loading and excavating crew to feed the processing plant. So that's why we're in it.

But the better you can do it, you also have a lot of downstream effects, again, to improve the production of that mine site. So if you have quality drilling, you get good fragmentation, that's easier to load. There's no secondary blasting. It goes through the plant easier. It's a more consistent feed. And so you just drive that whole value creation cycle at the mine. And for every rock, it really puts us right there at the beginning. And so I'd like to talk a lot about life of mine. And when our people are there, we want our people there from the exploration stage all the way through closure and drilling allows us to do that, exploration all the way through production and then finally, curtailment at the mine site. And we live with the customer out there.

Okay. So let's continue on load and haul, which is another critical part of the value chain. It's what comes after drilling. So since the last Capital Markets Day, we've increased our capabilities in that mixed fleet automation. Helena mentioned the mine rescue at the Red Chris mine in Canada earlier last year, where we automated one of our competitors, pieces of equipment to rescue some people. But another example that Helena covered was Roy Hill, where we have the largest automated mixed fleet on service haul trucks in the world. And then on electrified load and haul, we've also made some great achievements. And tomorrow, you actually get to see and touch and feel and hear one of these achievements, and I'll cover it here in a second. But we've made good progress on that.

And then a lot of the examples that we have are creating really real value, and that's important. Because, again, people don't buy automation just for technology's sake. They buy automation because of the benefits economically to that mine. And those benefits are running through the shift change where the operators leave and go switch out with the next set of operators, the machines keep running. Or to the extreme where you're operating a fleet, let's say, up in the Pilbara in Australia, and your operators are 3,000 miles away and one operator is really running 9 machines. Again, that's a huge economic benefit, and that's where we're at.

Okay. So now I'm going to show you this one. Tomorrow, like I said, you get to smell, hear and watch the rigs. But this is really exciting for us because we took one of our really, let's say, segment dominating products and made it even better. So here we go.

[Presentation]

Okay. I realize I don't have to push the button to start the movie now. But anyway, really excited about the new truck. And of course, I love the numbers even better. So again, people don't buy stuff because it's new, they buy stuff because it adds more value. And this Minetruck 66 eDrive, it transports 20% more tons per hour at the same time, reducing fuel consumption by 25%, and it has a 15% shorter cycle time. So again, that's kind of transformational when it comes to a fleet of these moving material.

In the mining game, the faster you can move the material to the plant and get it through and refine it, that's where the value is created and captured.

Okay. Moving on to loaders. So in electric loaders, again, we're continuing to strengthen the position. We have an electrified Scooptram 14-tonner called the ST-14G. And it already stands out as the best in class in both operating time and safety. And with the design enhancements coming shortly, we expect to extend that again another 15% in 2027. At the same time, we're really reducing the charging time from 85 minutes today to approximately 35 minutes using the megawatt charging system, or MCS technology. And this combination of higher productivity and faster charging simplifies the integration of battery electric on to the mine site. And that gets the customer's acceptance even faster. So looking ahead, we're going to continue to improve both range speed and charging time going forward. So that's kind of how you develop these BEVs over time.

Okay. And then looking at electrification, again. One of the biggest benefits of electrification. You remember the very first movie, there's deep automation movie. As you get deeper into the earth, as you go down, the temperature goes up. And so you need more and more ventilation, the deeper and the longer your tunnels are underground. And ventilation is responsible for about 40% of the OpEx cost on a mine site. And that ventilation, of course, is consuming a lot of electricity.

So when you put electric machines underground, they don't have that same requirement for the amount of -- basically, the ventilation is diluting what's coming out of the diesels. And that's the more diesels you have underground, the more air you need flowing down there. So when you have electric down there, you don't need near as much and you're not generating as much heat from the equipment as well. So then electrification becomes more of a business decision versus just an ESG, or sustainability decision.

The other thing you saw [ Wayne Sterling ] in the movie talk about the torque. And I got to drive one of these machines up in Canada when we were looking at the very first generations. And it's amazing. I mean there's no noise at all. And the thing is just quite powerful, and you just get in mash the gas. It's not gas anymore, and you just go and it's -- digs into the pile with a lot more power. So this will be driven by economic decision going forward.

And then talking about safety. So Helena mentioned, we always start with safety, and safety with batteries, of course, is very important. And we design ours with all these different backup safety systems. And from mechanical protection to the advanced energy management and cell design that we have, we've done very well to have zero injury causing accidents in the years that we've had these electrified pieces of equipment. So because operations underground are inherently high risk it's very important that we're not adding to that risk by putting some new solution down there. So it was very important to us then to make sure we have all these different redundant safety systems on the machines.

Okay. And then let's talk about service, another one of my favorite subjects after drilling. So service has been a core driver of Epiroc since the spin. And we see consistent long-term growth and strong underlying demand. And so since 2015, we've achieved that 9% order growth rate, and that's mainly organic. And this is driven by using the fleet more. It's also driven in combination with the age of the fleet and also the initiatives that we put on our side to productify service, and make service in a package that's easy to sell at the customer center. So whether it's a service agreement type, or whether it's some new solution that we have to extend longevity or improve performance, all these different initiatives that have added to that ability to grow in service.

And then most importantly is that service is highly profitable and cash generative to Epiroc. So the more that we can invest in service, the more workshops, the more technicians, the more presence that we have, like Helena mentioned. Leaving Russia and then able to go to Congo and Zambia and grow those businesses to make up for it was big for us. And I think we've learned those lessons over the years.

Okay. And then again -- did I switch? There we go. Okay. So the service offering is broad and robust. So we talk about parts and kits. We talk about agreements and audits. We talk about the circular solutions. And when I say circular solution, again, this is something that helps both the planet and the customer. So the customer saves money because you're not having to buy a new component. And we're helping to, let's say, recycle or remanufacture that component and put it out there. So whether it's a major component like an engine or a transmission or a hydraulic pump or motor, or if it's the entire machine, we're prolonging the life of that mineral content and energy that's already been spent.

And then the last is around training and support and digital. So we see this digital enablement more and more, and we're going to give you an example here shortly on that. But the digital enablement really allows us to get technicians up to effectiveness faster. And so before -- when I started 25 years ago, it was a lot of books. You have these big binders and you had to kind of dig through these books as you were troubleshooting a machine or fixing a machine. Now all of that information is compressed into one device, and it's just at the technician's fingertips.

Okay. I like this slide as well. It really shows like all those different offerings, when do they occur when the machine goes to the site. So you have this initial new machine and then you have a warranty period where you're not going to see tons of revenue. But you set the stage when you sell the machine and you agree with the customer on a maintenance strategy and how the equipment is going to be maintained on the site, and you set the stage to sell all these products over that, again, that life of the fleet and then hopefully multiple fleets over the life of the mine. And so that's how we do it and how we make sure that we do well on that first fleet, so we get that next fleet and the next fleet after that. So that's service always secures the follow-on sales from the initial fleet sale.

Okay. Downtime is -- it's driven by the harsh conditions that we're operating in. If you think about a drill, another reason why I like drills and I like hard rock is the machine is basically shaking itself to death, right? So as you're out there, I mean, it sounds graphic, but that's why we like these machines because it's out there putting maximum energy into the rock to break the rock faster than anybody else. But in the process, it's seeing dust, it's seeing heat, it's seeing vibration. And yes, that's why it's going to hit that breaking point.

What we can do now that we couldn't do again, 10, 15 years ago is we can analyze the machine, and we can come up and be much more prescriptive and predictive on when those components are going to fail. And that way, we're not experiencing this kind of random downtime, but we can really plan it out with our customer. I mentioned earlier, we agree with what's called a maintenance philosophy. And that philosophy could be that we run the machine to failure and then we fix it, but it could also be that -- we run it under a planned time cycle, and we replace the components before they fail. And then if we get very advanced, then we're monitoring the machine, whether it's oil sampling, or temperature control, and then we can make suggestions to the customer when they should change out those components or when they should take the machine down for maintenance.

So this is what our fleet profile looks like. So the fleet is prime time for services. About 37% of the machines in our installed fleet are older than 10 years. So Helena mentioned that besides service growth, we also have the chance for replacement. So I think she mentioned in iron ore, where we had a big fleet installed more than 10 years ago, now that fleet is coming due for replacement. So we'll see more midlife rebuilds and end-of-life rebuilds, and we'll also see more equipment demand coming from that. And that's why we see that kind of consistent order growth over time, because as the fleet ages and then the boom comes, or the downturn comes, you're always working on the equipment. So you're either prolonging the life of it, hoping to sweat the assets more, or you're replacing it to get the latest generation, most productive piece of new equipment out there. So that's why it's important that we're on that journey with the customer.

Okay. We also see some structural changes in the fleet. There's fewer machines out there, but there's more work that has to be done on each one. Just like the 65-tonne truck that you saw the movie on, it goes up to 66 tonnes, and it's running 20% more tons per shift. So you're going to have less of them, but of course, 66 tonnes is more than 65 tonnes. So that machine is going to see a higher duty cycle on the equipment.

At the same time as that, there's a labor shortage. So whether we're in Nevada or we're in Santiago or we're in Perth, Australia, it's becoming more and more difficult to staff the mine sites. And so they go for more and more automation solutions, and then they -- you have to really agree with the customer on the technicians. Is it our technicians? Or is it their technicians? Because were drawn from the same pool. And again, it goes back to that initial discussion that you have with the customer about philosophy. So if the philosophy is they hire the technicians, then we train them. If that philosophy as we use our technicians, we also have to train them. So training is a big piece for us, and that's why I go back to that technology discussion. And using the technology tools that we have today to get that training to effectiveness much shorter time.

More than 50% of our fleet was serviced in some form in 2025. So there's still half of that fleet out there that is opportunity for us to go after.

Okay. We'll again go back to Lin Pusheng from Dazhong and talking with Helena about service.

[Presentation]

So how is Epiroc performing service on the machines?

[Foreign Language]

Okay. So the strength starts with the people closest to the problem. Helena said that, and I believe it. We have 7,800 service employees across the globe. Sometimes they're on a mine site and a group of 200 like we mentioned in Mongolia. And sometimes it's just one man or one woman with a service truck that's going around a metropolitan area like Chicago that has multiple quarries around it and servicing one machine at a time. So we have both models. But we invest early on in these technicians because they truly are an asset to the corporation.

So we work with schools and universities, technical schools, welding schools, hydraulic schools and then mining engineering schools to make sure that we're securing that next generation of talent. We were one of the first companies to start training technicians in China to expat into Africa. So we had an academy there that made a big difference when Zijin and JCHX and these companies moved out of China into Latin America, into Africa to make sure that we could technicians from the Epiroc side with them, to make sure that we secured that services business.

And then I'm going to talk -- the next slide as a video about a good customer of ours. He was actually here last week. But Sebastian is the CEO of Pucobre. And he's been with us on this journey of solutions. And so I remember 10 years ago when I was running the Service division and Pucobre started, it was very important that both his people and our people learn this kind of new philosophy. And that philosophy is Sebastian told me, he said, Jess, I don't know if the solution you're proposing is worth [ $3 million ] or [ $10 million ] but I want you to have your person on site until that value, whatever that value is, is delivered. And so that was this kind of transition. And I think he's been really good at pushing us then to make sure the value is extracted from those solutions that we're selling. So it's been a great learning ground for us.

We always try to improve and do things in a better way. What can we do better?

The technology is evolving very quickly. I believe that one area that we can improve together is training and capability development. Why? Because operations and maintenance technicians, at least in our case, often have the same basic education that they had 5 or 10 years ago. A clear example of this is the adoption of Simba COPROD. So while the technology delivers clear benefits in this case, in drilling accuracy and control, it came along with a very steep learning curve, which affected how fast Pucobre can reach the full potential of the machine. So this experience shows that the advanced equipment alone is not enough.

And to address that, for example, we are working with Epiroc to develop internal drill masters with Pucobre, people who deeply understand the technology and can train others in day-to-day operation. This is a real challenge, and I think it's an area where Pucobre and Epiroc must continue working together, focusing not only on the equipment but on the people who operate and maintain it and which specific capabilities they will need for having or deploy the full value of the equipment.

Okay. I'd like to welcome on the stage Ms. Christel Fullenbach. She's our Global Vice President of Operations for our Service division.

Thank you.

Hello, Christel, welcome to the Capital Markets Day.

Thank you.

It's a pleasure to have you here. So we talk about Service, and we often jump right into systems and tools. But what is really the challenge that we are solving.

Yes. At the core, it's just on -- I imagine sitting here in the room, I imagine you are standing in front of a machine, everything comes together, forecasting, planning, customer expectation and you need to solve the problem. You need to solve the task. And this is what our service technicians see as reality every single day, several times. And this is also why we decided to invest heavily in digitalization of service to support our service technicians. So means we did not start it, okay, which tools are available. We started really what is the problem of our service technician today and how can we support them in the best way.

Sounds good. And how does this look in practice?

Yes, I can show you. So we have a technician copilot. And just imagine, I asked this copilot, okay, I'm a new service technician, and I want to do the daily maintenance work of the SmartROC D65. And we -- I get directly the answer. And then I ask additionally also, okay, but how can I do -- how can I change the air filters, but I don't have hand-free. So it means I'm just talking with the copilot, and it's also working. And then we often think everybody is speaking English, but this is not always the reality of our service technicians. So it means I can even ask -- I asked it in German. Can I have some videos to explain it to me? And it also got me the answer.

So you see there, this is a really fast solution how we can reduce really the fixed rate of failures, how we can improve our repair times and also invest in our service technicians so that they are getting faster to the problem solved.

Sounds good. So once the technician has to support -- this support in the field, how can we scale this across Epiroc and all those thousands of mines?

Yes. Really good point. Because this is for sure a good interface for the service technician, but we know always behind AI or a tool, there are always a lot of processes and other tools. So one tool I want to highlight is our asset performance management system, Epiroc uptime. This is really our backbone of machine data, of forecasting of parts availability and where everything comes together.

Good. And everyone in this room is very eager about business impact. What does it mean for us?

Yes. Let's say it this way. When we have a better forecasting, we have better parts availability, and this means our working capital can be optimized because at the end, it's inventory optimization. On the other hand, for sure, also the machine uptime of our customer has improved, which means that the customer satisfaction is much higher. And on the other hand, also they come and repeat business with us because we are there to support.

Okay. We've spoken a lot about customers. But if you would kind of conclude what about the customer experience from this?

Yes. The customer really sees that the uptime of the machine is higher on the one side, and this is what it is about. I just mentioned. So our machines are the first point in operations. It means if our machines are stopping, it means it has a lot of impact for our customers. So the availability is much higher. And on the other side, also, we can improve the uptime, the trainings and all of this together with our customers.

So loyalty.

Loyalty. Exactly. Yes.

And do you think we can improve this further? Or are we already excellent?

No. This is part of our service ecosystem. And service ecosystem is good, but what we have done now and what we further do is that we get the feedback loop back to engineering, R&D and parts planning. So means with the feedback loop, we not just solve the issue when it's occur, we even prevent that failures occur because we are looking into repeating failures, changing our engineering and R&D work, and then we have much better customer satisfaction again, customer uptime and also we invest a lot in lifetime of our machines.

Perfect. Thank you very much, Christel and keep up the good work with all service technicians.

Thank you.

Thank you both. Appreciate that. Okay. So this slide really shows why do we like or why service agreements matter so much to us. So today, about 33% of our addressable fleet is covered by some type of service agreement, a simple one like a preventative maintenance assist all the way up to a full service agreement. That's up 26% since the last Capital Markets Day, and that progress is important.

Machines under agreement generate twice the revenue that machines not under agreement generate. So how high do we want to go? I would really like to see over -- the important thing is that we keep climbing that service ladder and increasing the amount of machines covered. But I would like to see us within a few years, be up at the 40% coverage rate.

Service agreements strengthen that kind of loyalty and satisfaction. And again, going back to what I said earlier, it puts us there for the life of mine and make sure that we secure life of fleet, life of fleet, life of fleet, and then in the mine.

So let's go to the next one. If we take the next step, which is really service agreements to full partnerships, we can see that the top 10 customers at Epiroc represent 18% of the group revenues, and they're growing faster than the group average. And so that's not a coincidence. It's the way that we work with those customers. So with many of these customers, we're deeply embedded in their operation, whether it's the 200 technicians in Mongolia or the 700 technicians in India, it's important that we, again, live and breathe on that mine site with our customer as they go through the journey.

This is exactly what we aim to scale, more service agreements and then that kind of deeper customer intimacy and relationship, driving the quality of our growth and earnings going forward. So having more customers treated in this manner as we do with our top 10.

Automation. So earlier, I talked about the automation and the benefits of running those machines to the shift and getting those extra tons to the crusher and out the back gate at the customer is really being that value driver. But as utilization increases, so as you run those machines more and more hours without stopping them for operator changes or anything else, it means more maintenance, it means more demand for parts and service consumption. And the data is clear. Over 7 years, the Simba ME7 C in production generates at least 14% more parts revenue and a Pit Viper 351 automated generates 33% more revenue for us just because it's running those extra hours and not stopping. So this is a direct link between automation, utilization and then the service growth that we're seeing.

The same applies for electrification. So the electrification journey, it adds new service layers such as the batteries, the infrastructure like chargers and then the life cycle management of those batteries, including the end of life and recycling of them. So we see at least 15% more service revenue on electrified machines over 5 years, all else being equal.

Okay. This next one is a video talking about the benefits of electrification. And again, going back to that story about -- it's about the economics, not necessarily the ESG benefits of going electrified.

We entered into the journey on electrification some years ago together. So can you describe, let's say, Glencore's ambition when it comes to electrification and also give some insight of the work we have been doing.

Yes. No, I think that certainly is an imperative. I think Glencore is committed to the clean transition. And more importantly, I think what we've been able to identify these opportunities to electrify which actually make commercial sense even if you didn't believe in any other imperative. And certainly our investment at Onaping Depth, there was your equipment there has really underlined and highlighted the opportunity that mine is very deep, that's got to be high heat load. And so the opportunity to deploy battery technology, which is mature and developed into that environment certainly was a great opportunity for us. And that investment has then provided a platform for the region, for the city and ensures ongoing eco-production, ongoing employment and the ability of our business to continue contributing there.

Okay. So let me step back a little bit and talk about what is that next phase of growth. And to me, it's really about digitalization at scale. So, so far, I've shared with you what are those improvements that come with better productivity and uptime. But the key opportunity, I think, for you guys to take away from here is the opportunity. So globally, there's thousands of mines and most are still not connected. They're still not connected to either automation or electrification. And so there's a huge opportunity to scale now these solutions across the globe.

So we focus on 3 areas: connect, so making sure that we can connect all the machines on a mine site. That's why we focus on this kind of OEM-agnostic approach and make sure all the machines on site can speak that same language. The second one is we focus on automating. So deploying autonomous solutions across large mixed fleets. And then the last one, Helena mentioned about collision avoidance, but it's about safety, so protect, plan and sustain. So either we're making the fleet safer or we're making it more predictable when it comes to, like Christel mentioned, planning the spare parts and the technician availability on the site. So we have the capabilities. Now it's all about scaling and teaching our teams wherever they are, how it is we're going to deliver that value going forward.

These solutions require low capital. They scale pretty fast. With the AI tools, they make it even faster because we can get, again, salespeople and technicians up to effectiveness faster with those tools.

And the profitability today is low in some of the parts of our portfolio, and it's high in others. So the growth potential is high, and that scale then makes it possible for us to improve the margin on those smaller businesses.

Okay. Again, Hakan went through this pretty much in detail, but in our businesses, we also have different parts of the company in these different categories, but stability is really about making sure that in our decentralized structure that our leaders understand that where they're at, where is my business today? Am I in the stability phase? Am I in the productivity -- profitability stage or I'm in the growth phase. So it's something that's instilled from us from the very first years that we started with the group, but that's the way we want our leaders to look at their businesses and be honest and kind of move forward up that ladder.

Okay. So just to close this section, our goal is to give our customers that one consistent Epiroc experience, maximizing the value across their fleets, services and geographies. So whether they're a customer that's operating regionally or globally, we want that kind of felt experience to be the same for them across the globe. And when we do that well, our customers remain loyal and they come back to us and that service intensity increases because they trust us again to take that journey with them.

So thank you very much for taking the time, and it's time for me to bring the next speaker on and introduce him. And so I'm happy to know Jose, most of my career and 38 years with the group, he's definitely one of my heroes.

Thank you, Jess. Amazing 38 years. I suppose that the time flies fast when you enjoy what you do. And for me, brings me a reflection is when you found the green company you want to work for. But let me start with introducing yourself, walk you through the Tools & Attachments business area. We operate where the productivity is created at the drill bit, at the bucket, at the breaker, at the point where the machine turns power into output. As Helena said, we focus in attractive niches that provide recurring demand, high customer relevance, and a clear profitable growth. We work in hard rock for mining and construction, and to keep it very simple, in tools, we complement the best equipment and service provided by Jess and his team with the best tools for the best performance for the customer. In attachments, the carrier can be supplied by any OEM, but the attachment is what defines what the machine can do. So best attachment, best performance for the customer.

And this is not a price game. What the customer buys is performance, is reliability and total cost of ownership, and Epiroc is the answer. But let me show you where we are today. So the business area was affected badly by the slowdown of the construction and the under-absorption of a few of our manufacturing units. But we didn't stand still and we took actions, decisive actions to target our problems like what? Well, we did portfolio rationalization and optimization. We did operational improvement. We did also the pricing initiatives and the footprint, I mean, capability of the footprint, meaning that we consolidated a few of the sites.

What is important to notice is that what we are addressing here is cyclical. It's not structural. The fundamentals of our business remain strong. Our position is intact and the long-term value proposition remains valid. This is a reset in performance, not a reset in ambition.

And let's zoom in, starting with tools. This is a high-performance, recurrent and innovation-driven part of our portfolio. And here, the growth is clearly structural. The demand for metals increases, so does the mining activity and the drilling activity. The ore grades decline, that means that we need to excavate more rock that demands more drilling, higher consumption of tools. Mines go deeper, become more complex and automated, as you heard from Jess, that needs higher performance tools, bringing tools. Mines go deeper needs also a rock reinforcement and ground support really to ensure stability and safety.

And we offer hard rock -- high-end consumables for hard rock excavation. Our products include consumables, tools and digital solutions for the ground support and the rock drilling. The majority of our business is done with mining customers. So there is a strong correlation between the mining activity and the tools growth.

And for the tools business, this is a clear -- is built on clearly decades of innovation for over 120 years. So our story of history, so that is a story of solving one problem at a time, improving bit by bit from pneumatic drilling to the introduction of the carbide -- the cemented carbide bars that with the so-called Swedish method, one man, one machine, that revolutionized the mining industry at the time to the introduction of better tools when the first hydraulic rock drill was introduced in the '70s to the better drill string, advanced drill strings during the decade, the first decade of the 2000 to the one of the latest innovation, the Powerbit that it was the answer for the shifting towards automation that demanding longer service lives of the bits.

And now we are entering in a new era with the so-called PCD bits, the polycrystalline diamond bits, that have their buttons covered with synthetic diamonds. And this is a really big boost of productivity. You see in the graph, I mean a single bit just drilled more than 3,000 meters. So it's a quantum leap in productivity.

This is the bit that changes the economics of the drilling. It's the beauty and the beast in one piece. Produces the higher productivity, higher uptime, service life, longer service life in the range in the multiples of 3 to 5 or 5 to 10, depending of the rock conditions, but also is the perfect match for automation that drives also safety and offer lower operational cost and lower CO2 footprint.

And another impressive innovation is the COPROD for Simba that you heard Mr. Sebastian Rios from Pucobre talking about it, and I want to show you one film just to let you know all about it.

[Presentation]

So COPROD is our proprietary drilling system, widely used in surface drilling and now brought to the underground production drilling. It combines the strength of the down the hole with the flexibility of the top hammer to provide longer holes, straighter holes, much higher accuracy. So this translates into customer value immediately. Customers can drill twice as fast, can reduce 30% to 50% the deviation and at the same time, could also have a benefit of having less development work. As you have seen in the video, longer holes, less sub levels. That's money for the customers in their pocket.

And now if we move to Attachments. Attachments sometimes are seen as an add-on. We see it differently. The Attachments determine what the machine can do, the performance, the productivity, very important. Here, we see also that the growth is structural with all the megatrends in the market. Urbanization continues, and that brings the need of tunnels, metros, water supply, sewage, energy network. At the same time, there are this announcement of big investments in large-scale infrastructure like railways. So overall, the market grow in mid-single digits, and that will give us a big opportunity to grow together with them.

So let me show you a video about our specialty attachment in real world.

[Presentation]

We used to say we turn machines into productivity platforms. What do we mean by that? Well, clearly, one machine, single purpose, we have limited work and stand still aisle for a long time. When you can have a machine fit with different attachments, the multiplication of the tasks come as a really higher utilization, more money for the customer. That represents that the customer can do up to 6x the number of tasks that they do with a single machine. And if we project this, how many tasks you can cover with one machine, that represents that the CapEx in new machines, single purpose machines are reduced.

Feedback from customers is around 30% to 40% lower CapEx. That's a lot of money for the customer. And that creates also a good business for Epiroc because the attachments bring recurring revenues, parts, replacement, upgrades. And we need to notice that there are only a few global players at the high end of the attachments worldwide. So for us to remember, attachments are not just accessories at on. They are productivity critical solutions, the key drivers of productivity.

But how do we scale the business? Well, to scale attachments, we want to use multi-brand, multichannel model. The market is very fragmented. Customers run mixed fleet. Applications vary widely and purchasing criteria also changes very much by geography or by segment. So a single brand approach would limit our reach.

Now our portfolio set for many different type of OEMs, different type of buying criteria, premium or more value attachment also create the opportunity to select different attachments for different regions or different applications, different demands of customers, customers that are not equal in all the parts of the world. And how do we get the scale? Well, through our dealers network. So we have today more than 2,700 points of sale, more touch points closer to customers that represent more opportunities for us.

So model is clear. It's multichannel, multi-brand, broad and reach. And to grow attachments, also we need to be where the machines are across brands, across fleet, across markets. So OEM partnerships give us a perfect access to a much wider fleet population.

What is the value for the customer or for the OEM? The right carrier with the right attachment for the right application. So excellent for the customer need at the moment in the place that they select. What does it mean for Epiroc? Well, higher revenues. We have access to global fleets. We have also service coverage better and give us capital-light growth.

It said that partnership is a new leadership, and I cannot agree more. However, at the same time, in selected segments and applications, we go direct, like in mining. With our customer relationship because of our -- the rest of the portfolio in the company, we get closer to the customer. We can bring solutions for their entire fleet. We don't sell a product. We try to sell a solution. And that allow us to be closer, listening and bring the feedback for better and faster innovations.

So that brings me to innovation. And I want to present to you 2 amazing innovations among many others. To your right, we have the HATCON and Insight that give real-time full visibility of where the attachment is, location, usage and maintenance. We have actually more than 5,500 attachments in connected.

Another amazing innovation, the performance booster. Have you heard about it? Well, it's an add-on retrofitting component for the pulverizers. And what it does represents immediately customer value because it increases the crushing force for the concrete to be demolished, also has shorter working cycle and save fuel for the customer. So again, a big improvement, a gain in productivity. And what is there for Epiroc is that we monetize performance.

Let me show you now where we produce many of our premium tools that is in the Kalmar factory in Kalmar in Sweden. That is not just our factory, it's our center of innovation, operational excellence and provides long-term competitiveness. Let me show you what it is about.

[Presentation]

And you heard from Hakan, we run our business in 3 stages: stability, profitability and growth. We build a business that performs through the different cycles and market fluctuations. We stay focused and selective, investing in products that create real value for the customers and at the same time, provide strong margins for Epiroc. And the growth will come with this broadening the reach through the multichannel, through the multi-brand or our, for instance, yellow-on-yellow programs. The ambition is clear. We want to deliver both growth and industry-leading margins.

And for me to conclude, I want just to leave another reflection. Traveling around the world for so many years meeting customers, what I learned was that the most important thing that matters for the customers is really to deliver customer value and together in through collaboration. That makes a difference for them because at the end, if and when the customer wins and makes money, we win. Thank you very much.

Thank you, Jose. Thank you, Helena, Hakan, Jess, Jose. It's time for me to wrap up before we do some Q&A. So just to summarize what we have tried to communicate today, everything starts with the customer. And the best thing that comes out of a mine is the miner. We make operations safer, more productive and more sustainable every day around the globe. We focus on where performance matters. In our industry, downtime is the most expensive thing. So customers doesn't choose Epiroc because of the lowest price. They choose us because we improve uptime, productivity and the total cost of ownership. We are also not just selling equipment, we are supporting our customers across the full life cycle through service, tools, attachments and technology. And that gives us recurring revenues, high margins and resilience over the business cycle.

What you have seen today is a company that is evolving. We are moving from being an equipment supplier to becoming a productivity and technology partner. Through automation, electrification and digitalization, we are helping our customers to get out more of every machine and their fleets. And outperformance is not about peaks, it's about consistency, delivering growth, margins and cash over time. With our strong culture, global presence and innovation leadership, we are confident in our ability to delivering profitable growth onwards to you, our shareholders.

And before we start the Q&A, I want to show yet another customer movie this time with Marna from Ivanhoe, how we, together, united as partners will tackle the mining of the future. Please start the movie.

So do you have any favorite memory of Ivanhoe's collaboration with Epiroc over the years?

Well, I have many favorite memories about tough meetings we've had, but that's part of a partnership. In any family, you need to be honest in terms of what your needs are. And I think Epiroc always met our needs. But I think the standout moment for me was when we implemented advanced technologies at one of our sites, which we struggled to adapt -- adopt and Epiroc was willing to switch out equipment for us on short notice to enable us to meet our targets. So that's been much appreciated, and it's a strategic partnership that I'm sure will be in place for many years to come.

So we always try to improve. So anything we can do better moving forward?

I think the biggest thing for all mining companies in the future will be cost, will be ensuring that the critical spares we need are available and when there's demand to grow our business that we can do so quickly. So it's responsiveness, it's price competitiveness. And then it's technology, how can we innovate? How can we do things better in the future. So I think those are items we can all work on together to ensure that it's a sustainable industry where we can all make the necessary profit margins, but also collaborate to make the industry more efficient and more long-lasting.

Thank you so much, Marna, for joining me today, and thanks for the feedback.

Thank you, Helena. Thanks for having me.

[Presentation]

So perfect. Thank you.

Well, I saw 2 hands here. I see one there. I'm going to start with you, 3. It's time for Q&A for those that didn't see. Okay, 2 here, 2 here. Klas, if you start, please.

Sure. Klas at Citi. So my first one is on the growth and implications for the margin. So obviously, if you put the target 8% CAGR to 2031, get SEK 100 billion. So call it 5% to 6% organic on your typical organic versus M&A split. And then you say 3% to 5% long-term mining growth, 4% to 6% infra CAGR. So on your exposure weighted, that becomes around 4% market growth a little bit more. So we're talking 1% to 2% outperformance. So can we please unpack this? Where do you think you can take share?

And if we can focus a bit on mixed fleet automation because you're talking a lot, yes, about this very, very strong growth. It seems like you have a low single-digit market share today. You talk about over 112,000 machine market potential on Slide 114. And what kind of market share, yes, do you see necessary for that margin to stop being dilutive to the E&S business? Is it 10%, 15%, et cetera. So yes sorry, that was a long question.

It's kind of 2 questions as I take it. Where will we grow and take market share and then on the mixed fleet automation. So should we start with the first?

Maybe I can start maybe if we try to unpack the growth of 8%. If we look on, as we say, general then, okay, 2/3 being organic, 1/3 being coming from acquisitions. If you look from our historical growth pattern, we have been growing faster towards mining compared to infrastructure because infrastructure is now hampered by a very low activity. So of course, if infrastructure bounce back, that will, of course, boost that revenue stream.

But when we look at -- we have a very strong, of course, position on equipment. But of course, the largest growth potential for us, that's the aftermarket that is within service. We just mentioned, we serve a little bit more than 50%. So of course, that portion is a great opportunity to grow the service business, but also to grow, I would say, the tools business that Jose talked about, which is also related also predominantly towards mining. So I would say that we are -- where we see the biggest untapped potential given what we have today and of course, our strength and our history, I would still say it is within mining, even though, of course, an uptick -- a strong uptick in infrastructure will, of course, support us greatly because we have the foundation and we have the product.

And the mixed fleet automation.

Yes. So if I talk mixed fleet automation, one of our most profitable parts of that digital portfolio is our RCT business. And that's the one Helena mentioned with the rescue, but that's one that we're operating in a handful of countries today that we see actually quite some opportunity to then expand it outside of the handful that we're in today.

But then you also have ASI Mining that sits within equipment and then you have patent and protect, which is sort of interlinked because that's the software to drive fleet, everything can communicate together. You have Radlink, which is a low margin. So here's my logic. I'm just going to try and explain a different way. So 3 years ago, same location, you had 2,400 units mixed fleet, that's 3,900 today. That's an 18% CAGR. If I extrapolate that to 2031, that would be 9,000 machines. And you gave this number, 112,000 on Slide 114, including more at a TAM. That's a 9% share. So when you have that package together, ASI, RCT and more units under the belt, like what kind of market share do you need to see that margin stop being dilutive to E&S? Maybe too detailed, but a lot of investors ask us...

No, I think the opportunity here is tremendous. Of course, if you look on what we have been -- we have acquired 2 entities, of course, also develop our own solutions towards this. The LinkOA platform, for example, now that is also controlling our automated rigs for drill rigs. So -- but when we look at the total potential here, that is -- it's a big potential, and we're just getting started. So even though it looks like a 17% to 18% CAGR, which is good, we are yet -- we are still in the early stage, I would say, when it comes to revolving assets.

As you mentioned, a handful of countries when it comes to mixed fleet for surface, we haven't just nailed the solution, and now we are scaling it. So I would say this is great opportunity. And that's also why we have invested so heavily in this area.

So thank you, Klas from Citi. It's John from Deutsche Bank.

Two questions, if I may. If we think maybe with a 10-year view, these newer initiatives, the levers you're pulling in service, digitization, the BEV and the automation, what percentage of either group or E&S revenues do you aspire to? And how much stronger are the growth rates in these verticals, 2x, 3x [indiscernible]...

And when we look at the new technologies, as I say, automation has been growing in a good way. So that technology is further along. But as I mentioned, the potential, of course, the total potential opens up rapidly when we can do mixed-fleet automation. For electrification, it's still early, early days. And so if we take a 10-year from now, we believe that this will be a big portion of our revenues. And that's also why we keep on pushing, of course, so much product development into these segments to make sure that we will be the one winning this race because the business logic for customers is clear. So we are convinced that this will be a big part of our business 10 years from now.

Okay. And a quick follow-up, if I may, taking into the weeds for a second. On Slide 101, you have kind of a decay of the effectiveness of the machine in the field you presented it. I want to know if there's been any change in behavior on how customers in key hard rock verticals are choosing to refleet or refresh. We're enjoying very strong commodity prices. I think expansion of production has been challenging, but has that actually led to faster turnover to actually de-age the fleet where there's structural demand?

I would say that what we have seen, and you can replace, Jess, but I think what we have seen so far is that of course, the lead time for replacement, it still if it's the larger machines, it's 9, 10 months maybe. So of course, I think this is what we see both at the high growth levels of this type of mid rebuilds trying to push up the life as much as possible and at the same time, also more and more replacement. Jess?

Yes. I think if you look at any of our key customers, maybe they have more than 50 mine sites and 1 mine site might be in need of additional production, the other one might be in cost reduction, the other one might be steady state. So it's a bit mixed. So if they're able to wait for that replacement to show up, they will. But if they need to like make hey, while the sun is shine and then they keep that fleet running until the very end. So it's kind of a mix, but we have both conversations happening today.

I'm not sure if I am online. Chitrita from JPMorgan.

If I could just follow up on the growth question. I mean, clearly, it seems like a very exciting time on the mining side. And perhaps it feels like you can grow -- the business can grow faster than the 8% growth target that you've outlined. If I think about the moving parts, I mean, how sustained do you think this growth can be, especially the Q1 results very strong orders? And in other words, should we expect a few years of outsized growth and then maybe some normalization?

I think if we -- when we talk about the underlying activity levels, that is very healthy in mining, and it's healthy both on the equipment side as well as the activity levels driving then the aftermarket. Of course, if we look on -- we have a couple of quarters now with -- if we have large equipment orders like we had in Q1, which really boosted the orders received for equipment. Of course, you can have quarters like that. But when I look at the pipeline and we are tracking the large projects that are out there, let's say, 18 to 24 months, it's a very solid pipeline. There are large fleets that are to be replaced, but there's also brownfield expansion projects and greenfield in the pipeline. So we are, of course, trying to get that to maximize everything we can get when, of course, some prices are at this level, but also there are a structural need for replacement, especially towards certain commodities where the fleet starts to become -- it's older than what we showed here when we look at it from an average perspective.

And I would say the 8%, they are -- that's over a cycle, as I'm sure you have seen us and heard us say. And when we look back then 11 years, then we were basically spot on the 8%, maybe slightly by coincidence. Right now, just like Helena said, both short term, but also medium and fairly long term, it looks very good. We talked in the presentation, I guess it was you, Helena, about copper and that actually doesn't really match long-term demand and supply. So we are optimistic. But then as I talked about, cycles come and cycles go and 2031 is 5 years out in time, we'll see what happens. As it looks right now, for sure, we could have the potential to outgrow the 8%.

And sorry to follow up on the electrification community. What are the starts [indiscernible] mentioned was that maybe even 80% of the fleet could become electric by 2040. Could you please size that in terms of the opportunity maybe percentage that would need for your growth?

So what the slide is saying is that of mobile equipment underground by 2040, the estimate is that 80% of those vehicles, not only mining vehicles, but also utility vehicles will be electric in some form.

So for us, what this means is, of course, that we have a very strong position today, and we will be able to defend that position and take market share because there is still plenty -- there is still small regional players out there as well. So of course, for us, it's to protect and keep that and to take market share. If you can electrify a machine and at the same time, improve productivity with 10%, that's something that it's not just the CO2 part of it, it's actually productivity as well. So of course, ambition is then to take market share as well based on this new technology.

And then on top of that, as we also showed on one slide, when we sell BEV equipment, we also get actually more aftermarket business.

Thank you, Chitrita. And James Moore from Redburn.

It's James from Rothschild & Co Redburn. Two questions, if I could, on Equipment and Service, maybe for Jess, maybe. Between 2021 and '25, your revenue grew about SEK 12 billion organically, if we take out currency and acquisitions, keeping the numbers simple. And your organic EBIT went up SEK 2 billion with a drop-through below 20%, well below your gross margin structure. I'm familiar with the reasons you gave, the acquisitions and the mix in digital and the fact you have a high share of equipment. But just broadly, we're in a good market. Copper and gold is high. It's off the top, but well above planning rates. You're going to grow low double digit for the next 3 years, sure as [ XREX ]. If you do that, what sort of drop-through can we get in the Equipment and Service division? And is -- have we bottomed timing-wise, it looks like we have. What sort of drop-through can you get? And what's really credible given the shifted mix of the company, given all the M&A that you've done? Is '26 now totally off the cards because of the change in mix? What's a credible profit to [ gain for ]?

I'll take it. So yes, that journey, 2021 to 2025 was definitely affected by acquisitions and definitely affected by a couple of big events like the Russian war and COVID, right, the tail end of COVID, the inflation after COVID. So that definitely affected the flow-through. And I would say that we always aim for this positive flow-through and accretive to the results. And the team definitely understands it. But I think no one up here can predict what's going to happen with the black swan events seem to be quite more common than they used to be. So let's see. But I think the team really is quite disciplined. And I think Hakan said every kroner is a prisoner here in our pocket. So we are very careful. And I think that journey, 2021-2025, it was fantastic, but it was, again, really focused on every 0.1% that we could look at in the margin. So we'll definitely execute the same way we did. But of course, market fluctuates and things happen, right?

We don't have a margin target. And neither do we have a flow to target.

Talking to the concept of how we bottomed because it's been 4 challenging years. It looks in the first quarter like we're showing some encouraging signs. But do you feel like with the split of service into 3 pieces, with the digestion of all of the dilutive digital acquisitions that you've done with the market turning, you've got some visibility that we don't have quite a lot of complex mix moving parts. Do you feel that you've got your hands around the business now and you can feel that we've had something of a floor at least even if we don't talk about the expansion.

Yes. I would never hesitate to call a bottom, but I hope that we are, let's say, on that uptick and the actions that Helena and the team took last year that they're showing visible results. So yes, I have optimism that it is there, but I'm not going to call it.

So thank you, James. Andreas Koski, BNP, please.

So my first question was also about the electrification data and the 80% of the mobile underground equipment being electric in 2040. I would guess that requires a relatively large part of your equipment sales already in 2030, maybe 2035 being electric because you mentioned that of your total fleet, almost 40% of your installed base is older than 10 years. So the first question is basically, do you believe that a very large part of your equipment sales already in 2030, 2035 will be electric? And what's the value opportunity of your electric equipment versus your diesel-driven equipment? You mentioned the upside potential in aftermarket, but is there also a much higher value attached to an electric vehicle versus a diesel-driven vehicle?

What really drives the age a lot is surface. The machines turns quicker underground. If we look on where we have started where electrification has taken off, it is underground. So of course, the transformation will be quicker underground than on surface, but we also start -- we have seen more and more interest on surface as well now. We are selling more and more electric Pit Viper, for example, [indiscernible] diesel. So I think surface will come up. But if you take 2035, I'm convinced that a big share of the fleet we put on the market will be in some type of fossil free version. It might not be BEVs fully, could also be cable electric ones for certain applications.

And what will that then give -- what that give us? Of course, it's -- this is much more advanced equipment than having a diesel or -- I would also like to say that we don't -- for us, automation and electrification goes very much hand in hand. So when we look at 2035, I do predict that a large number of the large orders will be both automated and fossil-free version. And that, of course, gives then higher aftermarket potential, but also that it is much more difficult for other smaller players to capture that share from us. So that's how we would say brick wall that aftermarket. But as also, it's not only then service or Battery as a Service or service contracts, it's also the product that Jose mentioned, like PCD bits, for example, because if you have a fully automated mine, you don't want someone to go in and change the bit all the time. So it really -- it expands the potential -- these technologies expands the potential of the full system, I would say.

The mix shift is not going to drive a higher equipment value as well. It's mainly in the aftermarket where you are seeing the growth opportunity or you see...

It's also equipment value, I would say. The more advanced machines, the higher the value is of the machine when we sell them as well.

It's the automation, to be clear, it's the automation that drives that higher value of the equipment. And so when you go with the electric machine, you go for the higher automation level as well.

Okay. So it's not that it is...

It's not that it's a better price just because of the electric...

And then just quickly, I was a bit surprised to see -- I don't know if it was your estimate, but the market growth in mining of 3% to 5% and in infrastructure of 4% to 6%. Does that mean that a lot of your M&A will also happen in infrastructure because that will be a faster-growing market? And do you see yourself expanding into, say, new products in infrastructure that you do not have today because of that market growth?

So the market growth that we have shown is in the niches we are actively working in. It's not a general market, and it's neither our growth from each, but it's basically in the niches we are, that's the growth that we anticipate in the long term.

But when I look at it from a historical perspective, we have been growing faster towards mining. Of course, we have a very solid presence and footprint and installed base. And so I do expect that a lot of the organic and inorganic initiatives that are coming, I would say, 10 years as well will be towards mining. If I look on infrastructure, it's a good complement. And we -- what we do in -- between these 2 segments is that we use the technology we developed within mining and we bring it into infrastructure to help boost the productivity. So it's a lot of shared technology between these 2 segments, even though it looks different. But from a -- I would say, from a platform perspective, when it comes to technology, when it comes to also manufacturing footprint, of course, we share those footprints.

So -- but I wouldn't say that -- I don't think you should be worried that the overall mix of the company will change. We have a very strong -- we like to have a strong tilt towards mining.

So before we take -- continue in the room, I will take one online. It's also on M&A as we speak about it. It's from Max Yates. "Strategically, how have Epiroc's views evolved on whether they would be interested in doing larger M&A into midstream mining, for example, pumps and grinders?"

As Hakan mentioned here on M&A, so we are constantly looking into the opportunities that are out there. If I look on the different segments that we explore, it is complementary to core and what is complementary to core, it is very much adjacent. It's products that fit well into our offering and where we can leverage then synergies in cross-selling these products across the globe. So I would say that it's in closing gaps of products. It's strength in the aftermarket could be companies that -- they could do consumables. They could be service providers that has a strong regional footprint, for example, or a regional business somewhere where we want to expand, but also then technology companies. So it's also towards technology.

I will -- I cannot answer specifically on that question with exactly that type of niche product that you mentioned. But I would say, in general, this is our thinking around M&A. So it will be close to what we know where we know that we can leverage the strength of Epiroc.

So thank you, Andreas. Then we should take Gustaf Schwerin, Handelsbanken.

I have a question on the replacement cycle for surface drill rigs. If you could help us on how much of your installed base you think is either up for full replacement or larger rebuilds over the next couple of years?

I will leave that to you.

Yes. So I think we showed that I think it's more than 30% of the fleet is older than 10 years. So if we said that underground is more like 7-year replacement cycle. Surface is more or less 10-year cycle. So you have 37% then over that 10-year age.

So the majority?

And we have a very strong position in that segment. So there's a big portion up for replacement.

Thank you, Gustaf. And then we take Vlad of Barclays and then we take over here.

Two questions. One on growth, the other is on profitability. On growth, for new equipment, you simplistically split the revenue into 3 groups, right; greenfield, brownfield and replacement. Are all 3 set to grow? And where you have the best visibility for growth within those 3? And then on margin, you obviously have an ambition to be an industry leader on profitability. What makes you confident in that? Is it that you view yourself as the best operator or maybe the best innovator, or maybe you just have one of the best end markets out there? Drilling is a good end market.

I would say when we look at the -- if we break down the equipment orders into these different buckets, we see good growth in all buckets right now. And when we look at the pipeline, what we have ahead of us, it's also in all 3. So it's not so that it's one like outgrowing the other. It could be, of course, if you look on the large orders only, there could be -- I mentioned replacement for surface equipment, for example, being a potential. But also if we look on the last, I would say, now 3 quarters and looking into the exploration, which is then more towards ground greenfield, then of course, that is also -- we expect that to continue to perform. So that's both -- it's both due to, let's say, the underlying activity levels, but it's also due to the fact that we have a much stronger portfolio today than we had maybe 5 years ago. So we expect all areas to continue to grow.

When we look into being -- having an industry-leading margin, for us, we are -- I would go back to our decentralized organization and our setup and the way we run the company and have been running it for many, many, many years. So we grow our leaders, as you can see, internally, you are trained very early on, a disciplined financial execution to meet your targets every year, and that's how you grow. So we have -- I think we have a very strong culture of improving every year, every month, every week. If you would listen to the conversation in this team, behind closed doors is always about what can we do better, what can we do better. That's the type of dialogue we're having always.

Also when we -- when we're having a great month, we're still focusing on what can we do better. So I do this -- I think this culture of -- that we're never satisfied, we always try to do better. That's what gives me confidence that this company and these people because in the end, it's people. And of course, we have -- we focus on the right things. We have a clear strategy. But end of the day, it's people that delivers the result.

Thank you Vlad from Barclays. Now we go to Alexander Jones.

Alex Jones, Bank of America. Two as well, please. First, on the aftermarket capture rate, Jess, you talked about being just over 50% today. Could you talk about where you think that could get to and sort of the pace of how you can reach that ultimate level? And then just on margins again, I think in the presentation, you said that you recover quickly after downturns and then reach higher peaks over time. Is there any reason after the downturn we've been in recently that you couldn't reach a higher peak subsequently?

Okay. I'll start with the aftermarket question, higher, right? I'd like to be higher than 30%. But of course, the usage of the machines is quite important. And so remember, we said that as the utilization driven by automation increases, the machine runs more hours. So I think we finally have a great opportunity. We showed it at CONEXPO in Las Vegas, this automated drill rig in a quarry segment. And then we mentioned quite recently automated haulage in a quarry segment. So quarry segment is a segment where typically the customers ran day shift only and weren't really like sweating those machines. Now that we see automation moving in there, it could be that, that segment then helps drive, let's say, more aftermarket than we haven't seen in the past. So that's an example of where we see it possible.

And on the second question then on the margins, yes, we historically have seen that we have been recovering and reaching higher than where we were before. I think is it impossible was your question? No, it's not impossible. Nothing is impossible. It will definitely be a stretch given that we've had a few years, '22, '23 with really very good margins. Since then, we've added on a few acquisitions, aware of at least one being quite large and will be hard to reach the group margin. So we've said that during last year when we were below 20%, we said we were not happy at that level. We want to improve. Last quarter, we were at 20%. We also talked about flow-through before. The most important thing for us going forward is to make sure that we continue to deliver positive organic flow-through quarter-by-quarter, year-over-year.

So good. We have one final question from online, and that's to -- about our acquisition of STANLEY, from Pete Lease. Did you achieve any of the expected synergies from the STANLEY acquisition?

Well, we have worked around it, and I have said today, I mean, mainly, we knew what to do, and we have done actions to improve these synergies. One of the important things that Helena has said is our culture, how we do the business, and that is something that we need to have worked earlier with these acquisitions to really they to understand how to run the business in the way. Then actions in the execution are paying off today, and that's why we saw the improvement in the performance. And I think that the 2 together, I mean, will give us opportunity to grow.

If I may, so in -- when we did the STANLEY acquisition, of course, we have a lot of sales synergies. And I think that is what you are alluding to, Pete. So sales synergies, not yet so much. What we have stayed focused on in this environment has been consolidated footprint, making sure that, as you mentioned, of course here, that we bring the STANLEY infrastructure business up to operational excellence so that when volume takes off, we will then be able to perform even better. So from a sales synergy standpoint, still early days.

Thank you very much. Thank you, everyone, in the room. Thank you for those online listening. We will answer those questions that came through the webcast if we can. Some of them we will not answer. But if we can provide any color, we will, of course. Thank you very much. And for everyone in this room, we will go to the hotel, Scandic. And then from there, we will walk to the dinner, so say, 15, 25 minutes. Thank you very much here. Thank you online. Thank you, the management team. Thank you, Alexander, and everyone else. It's been a pleasure. Thank you.

Hello, and a warm welcome to the Epiroc Q1 Results Presentation. My name is Karin Larsson, Head of IR Media here at Epiroc. And by my side, I have our CEO, Helena Hedblom; and our CFO, Hakan Folin. As always, they will briefly present the results before we do a Q&A session. You know the drill. Helena, please go ahead.

Thank you, Karin. So Epiroc delivered a strong start to the year with solid operational performance and record high orders received in the first quarter. Organically, orders increased 23% to SEK 18.3 billion. And this is a record, which is meaningfully higher than both the previous year as well as previous peaks. The demand was supported by historically high mineral prices in segments to which we have a large exposure, such as copper and gold. The equipment orders increased 44% organically and the service orders increased 12% organically. We also noted double-digit growth in exploration and tools.

The infrastructure demand improved somewhat, although geopolitical instability creates uncertainty. Revenues grew organically by 2% and adjusted operating margin increased to 20%, supported by organic measures such as disciplined execution and cost-saving initiatives. As we had currency headwinds, tariffs and higher input costs for tungsten in the quarter, the improvement is particularly pleasing to see.

Looking deeper into orders. In total, orders increased 11% year-on-year. Currency was still a headwind and impacted negatively by 12%. The organic increase was 23%, driven by strong demand from mining customers and was supported by several large mining equipment orders. The large orders amounted to SEK 1.3 billion compared to roughly SEK 300 million in the previous year. And please note, as from this quarter, we say that large orders are SEK 150 million and above compared to SEK 100 million previously, and the numbers presented on this slide are restated.

Equipment growth was again very strong and this time at 44% organically despite tough comps of 29% organic in Q1 '25. Sequentially, compared to the previous quarter, group orders increased 17% organically, driven mainly by the high mining activity, but we also had a seasonal better demand from infrastructure customers. Our strong order intake shows that customers value our reliability, strong service, high parts availability and equipment that performs. So thank you to all 19,000 employees around the world for relentlessly delivering tangible value to our customers.

Moving on to innovation. In the quarter, we noted that demand from autonomous surface drilling equipment was particularly strong. LinkOA, our technical solution behind the world's largest fully autonomous mixed fleet mine, Roy Hill, was recognized as Engineering Product of the Year at the 2026 Digital Engineering Awards, further underlying Epiroc's leadership in automation. Across our portfolio, innovation for improved safety and efficiency continues to support growth.

In exploration, our new Uphole Brake improves safety in deeper and more technically demanding exploration drilling. And in surface drilling, the next-generation PowerROC T25 delivers higher fuel efficiency, lower operating cost and simpler operation through an upgraded control system.

And finally, in underground operations, customers have responded very positively to our MT66 S eDrive, the successor to the MT65, the world's highest payload underground truck. And compared with a conventional diesel truck in the same size class, it delivers up to 11% higher ramp speed up to 7% lower fuel consumption and higher productivity through greater payload and more efficient cycles, all without any changes to the mine's infrastructure.

So let me now show a short video from when we demonstrated its performance to customers in Australia.

[Presentation]

On the demand side, aftermarket demand was strong, driven by mining. We had especially strong demand for mid-life upgrades in the quarter, which will be translated into revenues within the next few quarters. Within Tools & Attachments, we also saw an initial recovery in the demand for attachments used in construction. Our aftermarket represented 69% of revenues in the quarter, which is 2 percentage points more than the same quarter last year. As you know, we include Service and Tools & Attachment in our aftermarket definition.

Glad also to say that we have agreed to acquire Eventspec in South Africa, which will strengthen our service offering further. They provide high-quality spare parts and services mainly to mining companies in South Africa. The company has around 120 employees and had revenues in 2025 of around SEK 160 million. And the acquisition is expected to close in the third quarter this year.

Moving on to operational excellence. Our efficiency measures are clearly gaining traction. In the quarter, these measures supported the organic EBIT contribution of SEK 138 million, corresponding to approximately 0.5 percentage points despite external headwinds from tariffs and increased prices of tungsten. The margin progress we are seeing is gradual, structural and sustainable. So this is not about short-term fixes, but about systematically strengthen how we operate.

Cost discipline remains high across the group, and we are seeing improved workshop efficiency, particularly within equipment and service, where execution and productivity are improving step by step. We have also taken a number of targeted actions to mitigate higher input costs in tungsten, which is impacting our Tools business in the Tools & Attachment business area. And actions include intensified collaboration with suppliers, increasing prices through surcharges and continued rollout of our drill bit recycling program. And as in previous quarters, we continue to mitigate tariff impacts as well.

So with this, I hand over to Hakan to cover the financials.

Thank you, Helena. I will start then on group level, and our group revenues decreased 8% to SEK 14.4 billion, however, with an organic increase of 2%, but we had a negative impact from currency by as much as 12% in the quarter. Q1 is normally a weaker quarter when it comes to invoicing, and we now have a lot of machine on its way to our customers. The operating profit EBIT amounted to SEK 2.8 billion. That includes items comparing -- sorry, items affecting comparability of minus SEK 22 million, which is fully explained by a change in provision for our share-based long-term incentive programs.

If we look at the margin, the operating margin was 19.8%. The adjusted operating margin when we then exclude the items affecting comparability, increased somewhat to 20.0% to compare with 19.9% in the previous year and actually 19.6% in the previous quarter. And I would say that this is an achievement given the headwinds that we have talked about. So despite the tariff cost, increased input costs for tungsten, we have a positive organic contribution, which is explained by efficiency measures we have taken in previous quarters. And as Helena just mentioned, net impact on our group EBIT from tariffs is just below 0.5 percentage points.

If we then move on to the business area Equipment & Service. Here, we have orders which amounted to SEK 14.2 billion, and that corresponds to a strong 27% organic increase. And currency impacted negatively also here, and here it was minus 12%. And to repeat what Helena already said, there was a strong underlying growth within the equipment where we saw as high as 44% organic growth. And the large orders, which we now define as orders above SEK 150 million totaled SEK 1.3 billion, which is up then from SEK 280 million in Q1 2025. But even if we saw a large increase on large orders, even if we were to exclude these, we would still have delivered a double-digit growth, which then indicates that we have a broad-based and strong underlying demand within mining equipment.

Exploration was also again strong, which is encouraging then for mid and long term. And for exploration, it's particularly strong when it comes to gold. On the service side, we had an organic increase of 12%, and this was supported by circular solutions and, for example, mid-life upgrade. We have talked a lot about nickel in our calls in the last year and now the comps for nickel, which was weak in '25, have eased somewhat. I would still say though the comparables have eased, but we still have many customers which have their nickel mines still under care and maintenance. If we look sequentially instead, orders received increased by 17% organically.

And then on the revenues for the same business area, they were SEK 10.8 billion, and that corresponds to an organic growth of 2%. And again, negative impact from currency, minus 10%. On the revenue side, the organic increase for service was 3%, while equipment actually had an organic decrease of minus 1%. And therefore, the mix between service and equipment shifted towards slightly more service revenues. The EBIT for Equipment & Service was SEK 2.6 billion, and that corresponds to an EBIT margin of 24.0%. We had a positive organic contribution explained by disciplined execution in the measures we have taken in previous quarters. And also if we look sequentially, we had organic improvements in the margin.

Then I will move on to the other business area, Tools & Attachment. Here, orders received decreased by 2%, but we had a negative impact of minus 11% from currency. And therefore, organically, orders for the business area increased by 9%. In total, orders were SEK 4.1 billion to be compared with SEK 4.2 billion in the first quarter in the previous year. And the growth here we are seeing is mainly driven by mining, but we also see an initial recovery in the demand for attachment used in construction. And when we look sequentially instead, orders received increased by 16%, again, partly due to the strong mining. But we also, in Q1, we have seasonally better demand from our infrastructure customers.

So next slide then, revenues for Tools & Attachment, they increased 5% organically and were SEK 3.6 billion. Operating profit EBIT decreased 12% to SEK 404 million, which is down from SEK 461 million in the previous year. And we had a margin here at 11.3% versus 12.1% in the previous year. And we had currency headwind, and we also had increased input costs for tungsten and tariffs, which impacted the margin negatively. Sequentially, we also have the increased input cost for tungsten, which had a significant negative impact on the margin.

When we presented the Q4 result in January, I said that the full year impact on this business area EBIT would be a few tens of a percentage point. Given that the tungsten prices since then have continued to increase substantially, we now anticipate this number to be higher for the full year and the most severe impact we have seen now in Q1. Helena mentioned this already, we have taken several actions to offset these cost increases. And as for now, we anticipate that the negative impact will be reduced gradually during the year. What I would like to emphasize, though, is that despite all the headwinds, we actually have a positive absolute organic contribution, and we have a good traction on efficiency measures that we have already taken.

So moving on to the next slide, where we look at cost and we start with costs for admin, R&D and marketing, they were 8% lower than Q1 last year. We are continuously working on being more efficient. We have made good progress on admin and marketing, both year-on-year but also sequentially. In percentage of revenues, it was 17.4% and it was 17.5% last year. Net financial items were quite low at minus SEK 84 million, clearly lower than what we had last year, SEK 207 million. And this was, to a large extent, driven by lower interest rates. Our tax expense, minus SEK 657 million, in line with last year's and also -- and corresponding to an effective tax rate of 23.8%, which is also within the guidance rate we have of 22% to 24%.

Moving on to the cash flow [Audio Gap] compare them with SEK 1.6 billion in the previous year. Main explanation is lower profit level and also net financial items. Cash conversion rate 12 months is now at 88%, while it was at 100% a year ago. Working capital, which is obviously a meaningful factor for the cash flow. And when we compare to previous year, the net working capital have increased to 3%, so it's now SEK 23.5 billion, and it also increased sequentially compared to Q4. Increased inventories is the main explanation after a period of strong equipment orders. Our lead times are still at normal levels. But given the strong order intake, we are now ramping up production, which means that we are increasing inventories as we are building more equipment, but we will see increased output and deliveries in the coming quarters. And when we look at average net working capital in relation to revenues, it was now 37.4% compared to 36.9% in last year.

Next slide on capital efficiency. Our net debt decreased to SEK 10.5 billion. That's down from SEK 12.3 billion last year. And our financial position is strong with a net debt-to-EBITDA ratio of 0.71, and that has strengthened further then from 0.76 last year. Return on capital employed, 18.5%, down from 20.3%, explained by lower profit level. And please note then that all these numbers are rolling 12 months figures. At the end of the quarter, we had a cash position of SEK 9.2 billion. And if you join our Annual General Meeting next week, the Board is proposing for the AGM to decide on a total dividend of SEK 4.6 billion, of which half of that will be distributed already in May, and the next installment will be paid out in October.

And with that, I hand back to you, Helena.

Thank you, Hakan. So to wrap up, the first quarter clearly demonstrates the strength of our business. We delivered record high order intake with strong organic growth driven primarily by mining. Mining demand remained robust across all regions, while we also started to see early signs of improvements in infrastructure and construction from a low level, but moving in the right direction. And looking ahead, we expect mining demand to remain high in the near term. And for construction customers, we anticipate somewhat improving demand, supported by gradual market normalization and customer interest in productivity-enhancing solutions. So with a strong order book, proven innovation and a clear focus on execution, we are well positioned as we move forward.

So thank you, and over to you, Karin.

Thank you, Helena. Thank you, Hakan. Before we move into the Q&A session, just a quick reminder that we will be hosting our Capital Markets Day on June 8 to 9 in Orebro in Sweden. Many of you have already signed up, and we're really looking forward to hosting you. To those of you that were worried about transport back to Arlanda Airport already on Tuesday evening or in other words, you are not joining the Volvo Capital Markets Day, I have good news. We will adapt the program and add buses to safeguard that those of you that need to get on the plane around 7:00 p.m. on Tuesday will do so. We have around 20 seats available for the Capital Markets Day as of now. And if you don't know if you were registered or not, the answer is not far away. All registered and approved guests have received a calendar invitation for the event. So if you don't have the calendar invitation in your calendar, you need to sign up.

Thank you. Operator, you may open the line for questions.

The next question comes from Edward Hussey from UBS.

Maybe just the first question for me is on the drop-through within Equipment & Service. Obviously, a very strong performance. I calculate a 66% organic drop-through. Do you mind just kind of helping us bridge how that sort of performance happened? I mean, I guess, normal operating leverage in the business should be maybe 30% to 40%. So 66% is a step above that. Do you mind just sort of giving us a bit of color in terms of the sort of difference between the two?

So maybe I can start. So what we have been focused on has been to improve our service operation, which is pure efficiency measures. We have sit with roughly 7,500 service technicians. So there is always work to be done there in addressing efficiency. So that we -- that is one area. The other area is efficiency measures we have taken within the overhead structure. So that is more admin. The consolidation of customer centers, for example, is one of them. But also, I would say, general efficiency measures when it comes to transactional HR, finance, those type of more back-office structures. But then also, of course, with an increased volume now in our factories, that, of course, also gives higher absorption in our factories. So we have a good development when it comes to overhead variance in our manufacturing footprint in equipment and service as well as in Tools & Attachment.

Okay. And maybe just one follow-up on that was just in terms of like the actual service mix itself, so the internal service mix, did that improve in revenue terms year-on-year?

No, I would say.

If you look at the whole B -- I guess your question is specifically on service. If you look at the whole BA, then we had more service this year compared to Q1 last year. But if you look within service specifically, I would say the mix is rather similar this quarter as in Q1 2025.

Okay. And then just one more question for me. You mentioned the autonomous orders. I seem to remember you said following the delivery of the Roy Hill project that you're basically going to open up the order book. Is this sort of what happened in the quarter? And is this one of the big drivers for the equipment growth? And do you mind just maybe giving us a sense of how material this was during the quarter?

So what is supporting the order growth in this quarter is autonomous solutions related to drill rigs. So it's fully autonomous drill rigs and quite a lot towards surface drilling, where we have a very strong position. So it's not related to truck automation. But it's the same system we're using for both now. So of course, we're levering to the strength of the platform also on the rig side.

The next question comes from Klas Bergelind from Citi.

Klas from Citi. So a couple of questions from me. So first on the -- coming back to the E&S margin. I mean it's obviously great to see that the drop-through is improving, and it seems like the self-help actions are biting and it's a bigger driver than the improving mix. But I still wanted to ask if there are any positive one-offs above the line. Obviously, inventory days are moving higher, which is to support the backlog deliveries into the second half. But did you see any overproduction effect boosting EBIT? And also, Hakan, on other operating income and expenses in the P&L that moved to a positive SEK 267 million. Just wondering what's going on here? Is this cost out or something else? And how should we think about this line going forward?

If we start -- I can start and then you can continue. But we have no, let's say, one-offs that would say explains, let's say, the good drop-through. So this is structural efficiency measures that we have taken that supports the margin development. We produce to orders. So on the equipment side, there is almost 0 speculation orders. I wouldn't say that there is any, say, overproduction. So it's more that we're ramping up and that gives, of course, better fill rate in our factories, as I explained.

And if I take the second question then on operating expenses, that line in the P&L, it's very much related to revaluation of outstanding AR and AP. And if you follow the dollar during the quarter versus the Swedish krona, it started slightly above SEK 9. It was actually below SEK 9 for a while. But then it went up again just by the end of the quarter up to SEK 9.57, I think, was the final rate. And then when we revalue our outstanding receivables, especially then at the end of the quarter when they are in U.S. dollars, then we get a quite positive impact on those. So that's very much where that line comes from. And that is part when we then -- FX portion in the bridge, that is one portion of this negative 0.6 in the FX. That was a positive, and then we have other...

No, I totally understand, yes. Yes, it's not double counting. I totally get it. Okay. Then on the -- my second one is on the T&A margin. If you could say, Hakan, what the underlying margin was in the quarter ex the tungsten impact? And then on the compensation, great to hear that you think this was the worst quarter. But when you say that this effect will level off, is this because you were a bit late introducing the surcharge, so the full surcharge effect will come already in the second quarter? I mean, obviously, the actual tungsten absolute number should probably go up, right, in COGS, but just interested in that dynamic and how quickly you can fully compensate through the year.

Yes. And I wouldn't say that we were late, but it's not just pressing a button and then you fix all the pricing. We are also under contract with customers. So it takes some time. And obviously, it's a competitive situation as well. But in the quarter, it was actually more than 1 percentage point impact on the Tools & Attachment business area. And what we are expecting is that we will gradually reduce that over the year, but it's not just -- it's not going to be gone in Q2. There will be a gradual decrease over the year.

Got it. My absolute final one is on the billings. Pretty low sales growth out of the backlog. And obviously, it's back-end loaded in terms of deliveries through the year. But do you see increased bottlenecks or lead times getting more extended? So just trying to understand how we should think about sort of the sales trajectory in equipment as we go through the year. What kind of lead times should we assume now in equipment?

So we are at normal lead times. So I would say that the low growth number here is mainly related. This is a timing issue, and we have seen gradually increased output from our factories. But then, of course, you have a lead time overseas to reach the end market. But we don't have any bottlenecks in the system. So I think we are ramping up according to plan. And during my years in this company, I've done this many times. So I think this follows the normal ramp-up phase.

The next question comes from Max Yates from Morgan Stanley.

I wanted to ask firstly about the equipment orders. And obviously, we've taken a pretty significant step-up this quarter, both in large orders and base business. Could I just get a sense of the large order pipeline? I don't want to pin you to a number, but when we think about kind of individual orders and opportunities over the next few quarters, is it conceivable to stay at least sort of somewhat around this level? And is there anything in the kind of ex large order equipment business that you think is seasonal, whether that's kind of CapEx budgets being replenished and all the customers coming back and ordering immediately? Or do you just more see this as a reflection of the strong environment and high commodity prices. So effectively, just trying to gauge sort of to what extent this was a kind of one-off boost or at least we should be continuing at somewhat around the SEK 7 billion level going forward?

When I look at the pipeline of large orders out there, it looks very healthy. There's a lot of expansion projects ongoing in the world. At brownfield expansion, there's a lot of replacement orders out there. So I would say it looks strong across -- towards, I would say, in all regions, especially towards gold and copper, where we have a strong position, but also that we see the underlying activities is also healthy. So I wouldn't say that there is anything, I would say, extraordinary. I think what I see is that the geopolitical situation that we are in the world. It's bringing countries and governments to the position that controlling the value chain is a strategic topic, and we see also a lot of governments working on shortening the permitting time, giving faster permit to expand mines, et cetera. And of course, the very strong commodity prices are helping as well, customers to take the decision.

But when I look at the pipeline, it's a very healthy pipeline. And our fleet out there is also older than ever, which, of course, gives a good support also for replacement. So then, of course, there could -- it's always the lumpiness of large orders. This quarter now, we had SEK 1.3 billion. A year ago, we had only SEK 300 million. So of course, that lumpiness, you can't really predict quarter-by-quarter. But when I look at it from an 18-month perspective, which is how we look at the business booking or the pipeline, it looks healthy.

Okay. That's great. And then just second, when you think about your capacity, obviously, given the strong equipment growth, the revenues will follow. At what point does your kind of capacity become an issue? Can we grow the equipment business 10%, 15% for a couple of years before we have any capacity issues? How should we think about that?

I don't see capacity as an issue on the equipment side. So we have a very good footprint. We have a large footprint in U.S. We have in Europe, in Sweden. We have in India, in Nashik as well as in Nanjing. We also have worked during the last, I would say, 5, 6 years in making sure that we can leverage this footprint in a better way so we can produce the same product in several locations and that, of course, supports also the ramp-up. We also are investing and expanding our footprint in India as we speak. So that will come on board, that space or that new factory will come on board later this year. But we are not running full shifts in all these facilities. So there's much more room for -- to increase capacity because here, it's more manning for us. That's what it is to increase assemblers. But space we have.

It's more a matter of getting the manning in, training them because it's not simple operations, making them able to produce our equipment, getting our suppliers to also increase their production so we can get the components. But it's not about really our own facilities or space, it's more ramping up to the level where we want to be, which is what we are in the process of doing right now.

Okay. And just very finally, you've called out in the last 12 months some issues at the Kamoa mine that's affected your service business. I see from the kind of customer, they've had some challenges again this quarter. Did that have any impact on your service business and your service orders this quarter? And would you expect it too in the coming quarters?

So we have had an impact -- during last year, we had a quite big impact. That has gradually, I would say, it has gradually improved. And I wouldn't -- there is always -- it's not something that I would like to point out as an issue in this quarter. I think we are back on healthy levels in Kamoa. But as you say, they still have -- they are not back to the same production level as before.

The next question comes from John Kim from Deutsche Bank.

John from Deutsche. A couple, if I may. First, I wanted to know if you're seeing any prebuy or abnormally strong activity in your divisional exposures ahead of anticipated price increases.

Yes. It's, of course, always difficult to see if it is, say, prebuying or not, given also the high activity level in -- especially in mining. But what we -- what there might be some prebuying on the tooling side given that the carbide prices has turned up so rapidly. So that's the only area where I fear that there could be some prebuying, but we have not really -- there's no verification that, that is the case, but that would be a logic reaction given the very, I would say, steep increase in tungsten also during this quarter.

And one of the things I think we're seeing globally is kind of cost implications of the conflict in the Middle East. I'm just wondering if you could give us a bit of color context on your energy cost, logistics cost and how you're handling pricing through the year. Are you putting preemptive increases up in Q2? Is that not a feature? Is it normal that you do quarterly? Should we expect a large price up coming?

Energy cost is not a big part of our production cost since we do very little manufacturing ourselves, we do more assembly. So we are not -- I would say, energy for us is not really material from a cost standpoint. But of course, for -- would this continue could have indirect impact for our customers, of course, that cost for energy if it stays up high. But for us as a company, it's not material.

What is more likely that we will feel is if logistic cost and also shipping time extends, that might have a bigger impact on our direct energy cost. But of course, if we get higher logistic costs, getting the equipment out or tools out, then we usually try to push that through to the customers.

Understood. Final question, if I may. You've seen kind of a change in the Section 232 tariffs with regards to metal and source of origin. I know you're a big producer in the U.S. on the Pit Vipers. Can you talk us through your exposures here and what sort of pass-through provisions you have in your contracts?

We've seen some changes during Q1 in terms of tariffs. We had the change in 232 that came now actually after Q1. And then we also had this IEEPA tariffs that were ruled illegal and which were then replaced by this 10% -- the general 15% were replaced by 10%. I would -- without going into too much detail, I will say that those two changes, net-net, they will be somewhat positive for us.

The next question comes from Christian Hinderaker from Goldman Sachs.

I want to start on large orders. I'm curious as to the decision-making around the increase in the definition there, SEK 250 million. Is that about price? Or is there some other basis? And then as we think about the SEK 1.280 billion figure for the quarter, was there any contribution there from call-off on the Fortescue contract? I know that, that launched about 12 months ago.

So there was nothing from Fortescue in Q1 on orders. We have kept this SEK 100 million as the limit for large orders since -- I think since we created Epiroc, which given, I would say, the size of the deals that we're landing, but also, I would say, the total package that we normally sell, it's -- we felt that it's better actually to increase this especially the more we include also different type of digital solutions, automations in a large deal. It's a more relevant number than SEK 150 million as the number.

Fair enough. On T&A then, you've called out double-digit growth in North America. I'm interested to hear if that's all attachments. And then in Europe, still a decline. Any indication of benefits from the German fiscal plan? Is there any sort of regional callouts to make in Europe? And I guess just more broadly across T&A, how do we think about the balance of those two in terms of demand in the quarter?

So it was strong in North America. And that is supported both -- it's both attachment and it's tools. The -- when we look into Europe, I wouldn't say that we have started to see any impact from this package in Germany yet. However, the sentiment out there among the dealers is becoming more and more positive, and we also see that is demonstrated in the order intake. And if I look on the demand, we are -- it's strong in both areas. But as we have explained, it's from a low level of the attachment side, which I think is important to remember. So it's lower growth in attachment and it's higher on the tools business.

The next question comes from Alex Jones from Bank of America.

First, if I can start on the [indiscernible] on orders in the quarter, clearly very strong. You talked a little bit about the comps help there from nickel in particular, but I guess that's going to remain the case for a couple of quarters to come. So can we expect service to remain a double-digit growth business for the next few quarters or anything exceptional there that you don't think can continue?

So we see high activity levels across the different regions. And this is very much about taking customer share and working with the fleet. It's a good balance, I would say, on the growth we see in service. But in this quarter, it was also supported by strong demand for midlife upgrades. And that, of course, comes and goes. But I'm pleased to see that we can show these numbers in growth of service. So I would say we are -- we will do our utmost to keep on growing our service business. And as we have also talked about for many years, the fleet -- we have the fleet out there. So it's very much up to ourselves with high availability, the best service technicians and a very structured approach in how to capture this customer share of existing fleet. But pleasing to see the development here over the last, I would say, last 2 quarters.

Great. And then just on capital allocation on the M&A side, you announced a small deal this quarter. Can you talk a little bit about your pipeline and whether we should expect that activity to accelerate going forward?

So we have our pipeline, and it's close to core and it's areas that we -- and companies that we know well and that we've been working with for a long time. Then timing is everything. I think we have for some years now, stayed focused on integrating the acquisitions we have done, making sure that we realize the values that we expected. But acquisitions will always be also -- it's a long process, of course, but we have a solid pipeline. So hopefully, we can also continue. Now we announced one in the aftermarket this quarter, very similar to some of the other acquisitions we have done in previous years as well. So it's -- we stay with the themes, which is closing the product gaps or regional gaps, strengthening the aftermarket but then also it could be technology capabilities that we would like to add.

The next question comes from Rory Smith from Oxcap.

It's Rory from Oxcap. Most of them have been asked. I just wanted to come back to this point on service growth, the orders, double-digit order growth, but revenue growth just plus 3% in the quarter and how that relates to the customer share comment that you made. Are there any numbers that you can put around that customer share? And I guess, a kind of broader, higher-level comment on how that is going, not just in the quarter, but how you see that going through the course of this year as we talk about autonomous trucks, autonomous drill rigs, et cetera, how that kind of those actions are helping that? Any more color on that would be really helpful. That would be my first question.

On service growth, I think there are a number of different, I would say, areas that we're working on, of course, to make sure that we get more service contracts, but also that we get the availability in place so that we can capture the pure part sales. And this is very much about making sure that you are the most trustworthy supplier in that particular mine or that particular region. And we have been -- we have a very structured approach. I've been saying that we have a little bit more than 50% customer share over many, many years because in a way we are building this opportunity ourselves. But it's moving and it's trending in a positive way. And of course, the ambition here is to continue to grow this business in a structured way.

And very pleasing to see, of course, this -- what the environment we see now with very high activity levels that also supports that customers want to keep existing equipment up running at the highest productivity, and that's why we see more midlife upgrades as a product or as a service. But also, of course, that the machines are running with high engine hours and high engine hours also consumes more parts. So there is a correlation between the activity level and I would say the growth.

But I think -- but to your point here, we are step-by-step improving the customer share. And at a certain point, I would have to change the number. But so far, we say that we have a little more than 50% customer share.

Okay. That's brilliant. And then I think we talked about this on a previous call. But from memory, what was that customer share -- where did that peak, I guess, at the peak of the last cycle? And i.e., can it get back there? And do you think you need to invest more significantly in your sort of downstream service network costs in order to do that? Or you're happy with the sort of organic progression from here from that 50% to a higher number?

I would say when we had the mining peak before, we were at a lower customer share in the aftermarket. So this is something that we have gradually worked on since -- I would say, since 2011, 2012, especially since the creation of the Parts and Service division that happened during that Atlas Copco time. So I would say that for us, it's a very structured approach, and it is very much the closeness to our customers that is key. So that service network with workshops, et cetera, that is something that we are investing in constantly, especially with new countries embarking on a mining journey. Then, of course, we are early on and making sure that we have a strong footprint.

And this is about both having workshops in place, but also to train local people in that region or in that country. So this is something we don't talk so much about it, but Hakan and myself, we are taking decisions like that more or less every quarter to do this type of investments in new workshops with very good returns. This is not, I would say, a lot of money to get that presence and that footprint. And it matters a lot for our customers. We see this as it sends very strong signals to customers, and it's very much a prerequisite to be -- and to grow the service business with a large mine site over time. And we have a number of good examples where we have been very early on, and we have taken these rather small investments and built a very strong relationship and a strong business with customers.

That's really helpful. And then just finally for me. Obviously, you've got this sort of intention to get net working capital as a percentage of sales down over time. But just given what you see in terms of deliveries for Q2, how should we think about that improving or maybe getting worse in Q2?

First of all, it's rolling 12-month figures, the working capital over sales ratio. And then I would say we are still ramping up production and getting deliveries out. So for us right now, the most important thing is that we really get the equipment to our customers as soon as possible, while we continue to ramp up so we can meet deliveries versus the order intake we have had now for a few quarters. So I wouldn't be too optimistic on the working capital development in the second quarter as such. But long term, definitely, yes, we think we can do better than where we are right now. But for now, it's really more about making sure we ramp it up as much as we can. One other factor playing into the working capital development on the inventory side is, of course, the tungsten prices as well. Given how much they have increased, that also has an impact on the inventory levels.

The next question comes from Andreas Koski from BNP Paribas.

Two questions on the margins. So firstly, on the E&S margin. I think the service share of sales was at its highest level in a couple of years. So I guess you had a margin supportive mix. But based on the strong order intake in equipment, we should see equipment grow as share of sales in the coming quarters. So is it fair to assume that the incremental margin on the equipment side will be higher than the business area margin, i.e., is it fair to assume an equipment drop-through of around 30% or more?

Yes. You're 100% right, of course, when it comes to the mix situation that this was from a profitability point of view, a good mix in this quarter. it's fair to assume that the equipment we sell -- the kind of incremental equipment we sell will come with a better margin than the average margin for the equipment business. I think we will stop there and not say exactly where it is versus the 24% that we have right now.

Okay. So it might not be accretive to the business area margin. That's what you're saying?

Well, I said I didn't answer it really your question. I said it's better than the average equipment margin.

Okay. Understood. So then secondly, on the gross margin, I mean, 35.5%, it's still down 300 basis points year-over-year and meaningfully lower than the 37.4% that you achieved on average between 2022 and 2025. With the current group structure and now possibly higher sales volumes going forward, is it possible to improve the gross margin to the levels that we have seen in previous years?

If I may just start with one -- we had a question before on the currency side on the operating expenses, which were quite positive. But all in all, currency was negative. So a large of the negative items you see on the gross margin, I think that's one thing you have to remember when you look at the development of the gross margin as well.

Okay. So at current FX rates, we should not expect gross margin improvements or?

I think you can see -- I mean, we are obviously striving to do better all the time. So I wouldn't say we cannot see better gross margins, but I think that's one of the explanations why you see quite a big decrease on the gross margins.

Okay. Understood. And then lastly, on your PCD bits, do they also contain lots of tungsten? So will the input costs go up also on your PCD bits? Or is there a possibility that you will gain share in that part because of higher tungsten prices? And if that's true, have you already started to see signs of that?

So PCD bit also contains tungsten. So that's the majority. But of course, with the layers that you put on top of diamond, that enhances the life of the bit substantially. With the prices on tungsten as they stand today, it's quite clear that the gap there and towards PCD has narrowed quite a lot. And we will do everything we can to push this solution, of course, because it's a brilliant solution also from a productivity standpoint, but also from an automation standpoint.

So -- but I think it's a little bit -- it's application-driven. So it's not so that PCD will replace all the types of normal tungsten bits that we have. That's not realistic. But I do believe that there -- maybe not -- we have not seen that yet, but I do believe that we will see more and more interest in this solution in the coming quarters.

The next question comes from Vlad Sergievskii from Barclays.

Congratulations with the record orders. Obviously, some impressive numbers out there. Could you talk about base new equipment orders, excluding large ones? Those were, I believe, up 30% year-over-year and over 20% sequentially. Any particular driver for those to call out? Maybe your exposure to exploration spending played a positive role over here.

So it's good underlying activity, both towards gold, towards copper, also replacement of few units towards the iron. And of course, for surface applications that's quite high-value numbers, but also a strong development towards exploration. And we have a very solid offering towards exploration with both equipment for surface exploration, underground exploration, both core drilling as well as reverse circulation after the -- we acquired the assets from Schramm. So we have a very strong position towards exploration now, and we are leveraging that strength with the uptick in activity level now, especially around brownfield exploration.

So I would say it's a combination. But there is nothing standing out. I would say it's more high level across the different regions on the underlying activity levels on equipment.

Great. Production ramp-up is a nice topic always to talk about. How advanced are you on this ramp-up? When do you foresee yourself reaching the targeted production level?

That depends on where we are volume wise quarter-by-quarter. But we have initiated all the work that we normally do when we're ramping up, and we started that work during the autumn given the increase in order intake for equipment. And of course, we are increasing the speed now given the orders we have received here in Q1, but also what we see in the pipeline for Q2. And as I said, it's about increasing manning, working close together with our subsuppliers to safeguard that lead time stays as short as possible. And so far, so good on lead times. So it's key to keep lead times short, of course.

That's great. Final one from me. What sort of growth rates are you seeing in gold exploration in particular right now? Will you be prepared to share any rough ranges?

We see good growth. And it's -- we are -- of course, we have some, I would say, business with juniors, but a majority of our business in exploration is towards large mining companies. And we see good exploration activities towards gold. And what is boosting this is also that we have a different offering today than we had some years ago, especially with the reverse circulation products that came with the Schramm acquisition.

The next question comes from Gustaf Schwerin from Handelsbanken.

First, on the orders in equipment. Would you say that you have a larger share of rotary drill rigs as a percentage of total orders versus recent quarters? That's the first one.

We have a strong order intake for rotary drill rigs in the quarter and several of the large orders were in that space, together with fully autonomous solutions as well. So that clearly supported the number there, SEK 1.3 billion.

Perfect. Secondly, on service revenue growth. Can you give us a sense of how much parts and kits grew this quarter?

It was very -- it was a similar mix, I would say, between parts and traditional service. But then we had, I would say, an extra boost coming from midlife upgrades, which is also more lumpy in nature because that is -- you do it once and then that is not coming back of the machine.

Yes, but that was on orders, right? I was referring to revenues specifically, it's parts and kits above the reported growth.

If you think about what we define as service, where we have both what we call parts and services and we have the digital part, then actually the parts and service business was growing somewhat faster than the digital business, if that was your question, Gustaf.

Yes. Lastly, just adding to Andreas' question on the net margin. If we take the higher order growth for midlife rebuilds in Q1, do you think that is a drag on the margin for Q2 and onwards? Or can you compensate that by leverage efficiency measures, et cetera?

I think we can compensate that because midlife upgrades, when we started this journey, of course, when you are in the -- the first time you do it, of course, you are less efficient. And the more you do it, the higher efficiency you get from the service workshops. So for us, it's positive to have midlife rebuilds. So it's a very -- it's a profitable product for us, and it keeps customers -- the stickiness to customers as well.

Thank you. I wanted to like to interrupt there because time is up. Thank you, everyone. And just on the revenues from service in Q3 and Q4, respectively, we had strong demand for traditional service, which, of course, has been invoiced now in Q1 and midlife upgrades will come in later. But with that, I know we have a few of you in line. We will reach out to you after this call. Thank you very much, everyone, for taking the time.

Thank you.

Thank you very much.

Hello, and a warm welcome to the Epiroc Q4 and Full Year 2025 Results Presentation. My name is Karin Larsson, Head of IR and Media here at Epiroc. And by my side, I have our CEO, Helena Hedblom; and our CFO, Hakan Folin. As always, they will briefly present the results before we do a Q&A session. You know the drill.

Helena, please go ahead.

Thank you, Karin, and hello, everyone. So I will start with the highlights for the year. So with 79% of our orders deriving from mining, I'm glad to say that the mining demand remained robust in 2025. The customer activity was strongest in gold, copper and zinc, while nickel was softer. Of our mining exposure, gold and copper now together represents 65% of orders. In the year, our customers continue to prioritize brownfield expansions and productivity upgrades as well as exploration, especially in gold and copper.

Infrastructure, which is 21% of our orders received was more mixed. Drilling rigs and equipment for larger civil engineering projects showed stable demand, whereas attachments for use in construction work remained weak. On a positive note, the destocking among distributors for attachments came to an end towards the end of the year, and now we are positioning us for growth.

Despite currency headwinds weighing on orders, revenues as well as profit, we managed to grow our orders organically in 2025 by 7% to SEK 63 billion and revenues by 2% to SEK 62 billion. And the adjusted operating margin for the year was 19.6%, somewhat lower than in the previous year, 19.8% and is explained by tariffs, product mix and some inefficiencies. So let me, however, be clear, in 2025, we had a strong focus on cost savings and increased efficiency. And in some areas, such as in attachments, we have done well, but in others, we are still working on improving.

During the year, Epiroc delivered many, many innovations that enhance safety, productivity and sustainability for customers worldwide, reinforcing our leadership in automation, electrification and digitalization. And some are built on proven solutions like the new Epiroc PCD drill bits, which is the next generation of the popular Power X bit. And in this new version, we have seen customers going from 7 meters drilled per standard bit to 400 meters per bit and often more than that. And with an increased use of automation within drilling, we anticipate good future demand for these type of products.

Other innovations that are not upgrades, but rather groundbreaking are these. So in 2025, we completed the conversion of the Roy Hill mines mixed fleet to driverless operation in Australia, creating the world's largest OEM-agnostic autonomous mine. So what began as a bold vision is now a reality. 78 haul trucks and around 250 ancillary vehicles operate now autonomously 24/7 in a mature production scale solution.

Underground, we advanced mixed fleet automation at Newmont's Cadia mine also in Australia, fully automating one production level, 1,200 meters below ground using our OEM-agnostic deep automation system. And this integrates loaders, rock breakers, water cannons and inspection robots into a single platform, enabling complete remote operations from a surface control room. And the results in both these projects have been impressive, improved safety by removing personnel from dangerous zones, higher productivity through continuous operation and record-breaking daily tonnage almost every month. At year-end, we had more than 3,900 driverless machines, Epiroc and non-Epiroc machines in operation, which is an increase of 13% compared to 2024.

Moving on to electrification and starting with a highlight that includes both automation and electrification. So in 2025, we won our largest order contract ever, SEK 2.2 billion over 5 years. We will deliver around 50 fully autonomous and electric surface blasthole rigs to Fortescue in Australia. And this includes cable-electric Pit Vipers, 271 E rigs and battery-electric SmartROC D65 BE rigs. And these driverless machines will be operated remotely from Fortescue's integrated operations center in Perth, which is more than 1,500 kilometers away and will increase productivity while also reducing carbon emissions.

I would also like to highlight the 5-kilometer battery trolley line inaugurated at Boliden's Rävliden mine in Sweden based on our Minetrauck MT42 SG trolley solution, developed in close collaboration with ABB and Boliden. This innovation is delivering remarkable results. Productivity is up 23%, ramp speeds are up 50%, maintenance costs down by 25% and diesel consumption reduced by 80%. And the energy regeneration during downhill hauls further boost efficiency. Production officially started during the year and interest from other customers is high.

In total, our electrification revenues amounted to 3.8% of group revenues in 2025. There are 40 mines globally that have ordered our BEVs, battery electric vehicles and the majority of our BEV orders in 2025 came from these pre-existing customers. They have seen that the electric solutions bring many advantages, including increased productivity as well as reduced ventilation cost. For example, in the Assmang Black Rock mine in South Africa, our BEV fleet has led to 11% more tonnes per hour and has reduced energy cost by 18%.

So a final slide then of innovations in 2025 before moving into the quarterly results. So safety is at the core of everything we do. And in 2025, we took an important step forward by partnering with Hindustan Zinc to implement a digital collision avoidance system in all their mines in India. And the solution combines advanced sensor technology, real-time positioning and intelligent alerts to ensure operators have full situational awareness. It's designed to integrate seamlessly with Epiroc's existing automation and digital platforms, creating a connected ecosystem that enhance both safety and productivity.

And on the attachment side, we have successfully launched the Epiroc Insight, a telematics solution engineered to transform fleet management of attachments. So by combining advanced asset tracking with real-time data insights, users get better control and visibility across their fleets. And already now, we have more than 5,500 connected attachments worldwide with more than 400 customers. And for us, it means valuable insights to further improve the product as well as to help our customers with proactive maintenance.

So looking into the fourth quarter, we delivered a strong performance driven by robust customer activity within mining. Our orders received grew organically by 11% and mining activity remained high, particularly in gold. Organic equipment growth reached 22%, underscoring strong momentum. And our large mining equipment orders amounted to SEK 670 million compared to SEK 820 million last year, signaling continued widespread underlying demand. And also our service grew well organically at 6%.

The growth in exploration demand was high, driven by a combination of a stronger exploration market and the leading offering of advanced exploration drill rigs and drilling tools. And demand in infrastructure and construction remained stable with a healthy activity level for larger civil engineering projects, whereas the demand for attachment was seasonally low. Our revenues grew 4% organically, and our adjusted operating margin came in at 19.6% compared to 19.7% last year. So despite currency and tariff headwinds, we managed to deliver an organic contribution of 0.6 percentage points. So we have been and we are taking actions to safeguard profitable growth, and I'm glad to see that our progress -- the progress in the quarter.

So looking deeper then into orders. In total, orders declined 1%, but the decline is fully explained by currency. So organically, our orders increased 11% to almost SEK 16 billion. Again, within mining, customer activity remained high, while demand from infrastructure and construction customers remained stable. Sequentially, compared to the previous quarter, group orders increased 7% organically, driven by mining.

Our aftermarket represented 63% of revenues in the quarter, which is the same as in previous year. We had a good demand for rock drilling tools and service for mining, while the demand for attachment used in construction was seasonally weak. As we are mainly exposed to the Northern Hemisphere in our attachment business, the first half of the year is normally stronger with Q2 being the best, while Q4 is normally one of the weaker quarters.

Within service, which represents 41% of our revenues, we achieved the highest growth within our traditional parts and service business. In total, the organic service revenue growth was 4% in the quarter. Historically, since 2018, we have managed to grow our service business revenue by 8% per year, and we aim to return to these levels. We have had -- we have a large and aging fleet. It now sits at 8.6 years on average and an increased technological height on the fleet, which supports a good foundation for growth. In addition, we have initiatives in place to capture more of the customer share already in 2026. By working more precisely with pricing, leveraging our alternative offering as well as find other ways of sourcing, then we can increase this share.

And if you are new to Epiroc, let me briefly explain the customer share. It's the proportion of Epiroc machines that we serve -- that we serve in some form or another. In the last few years, we have had a customer share north of 50%, whereas roughly 1/3 of the fleet has an actually service contract with us. So there is, in short, good potential to grow.

Moving on to operational excellence. Over the past year, we have navigated a complex and demanding external environment. On almost daily basis, geopolitical decisions impact global trade. So we keep on taking decisive actions to strengthen our resilience and drive profitable growth. The negative net tariff impact on our operating margin was just below 0.5 percentage points in Q4, and our mitigating actions include optimizing logistics and distribution flows, leveraging our global manufacturing footprint and adjusting our supply base, including key inputs like steel. Of course, we're also implementing price increases to compensate. And we pay close attention to tariff news and regulations, and we are ready to act if or when things changes.

We are also consolidating customer centers and production sites, and we have during 2025, consolidated sites in Germany, in U.S. and in South Africa, and we continue to consolidate. And this year, we are moving the tools manufacturing site in Canada to Mexico. So to become even more efficient in production, we invest further in India, which is now our fifth largest market when it comes to number of employees. We have more than 1,300 employees in India, and we are creating a global production and R&D hub for both surface and underground equipment. But it's not only about producing. India is a rapidly growing domestic market, and we are already growing at high double digits there. So our increased footprint can safeguard this growth and our deliveries onwards.

Moving on to next slide then, people and planet. So safety first, of course, and we have had good progress during the year on safety. Among our 19,055 employees, the total recordable injury frequency rate decreased yet again to 3.9, down from 4.3 last year. And much of our focus is to increase safety awareness in our new entities as well as for external workforce in production and service.

On the environmental front, we achieved a reduction in emissions in operations driven by renewable energy initiatives. However, transport-related emissions rose due to the increased air freight and route adjustments linked to tariffs.

So Hakan, would you mind going through the financials?

Yes, Helena, of course, thank you. Starting on a group level, our group revenues decreased 7% to SEK 16.1 billion, and that's an organic increase of 4%. And here, we have currency impacting negatively by 11%. Aftermarket represented 63% of revenues in the quarter, which was the same level as in Q4 2024. So no mix effect between equipment and aftermarket.

The operating profit and EBIT amounted to SEK 3.2 billion, and this includes item affecting comparability of plus SEK 58 million, mainly relating then to an insurance settlement gain, but also cost for efficiency measures. And finally, we had a change in provision for the share-based long-term incentive program of minus SEK 4 million.

Our operating margin was unchanged at 19.9%. The adjusted operating margin, then excluding item affecting comparability, decreased somewhat to 19.6% to compare with 19.7% in Q4 2024.

And as Helena briefly mentioned, the margin was negatively impacted by tariffs with almost 0.5 percentage points. And this negative impact, despite then a lot of efforts ongoing to mitigate will remain in 2026, although at somewhat lower levels each quarter. However, despite the headwinds, we managed to achieve an organic profit improvement of 0.6 percentage points in the quarter, as you can see in the bridge on the right of the slide.

If we then move on to the business area Equipment & Service. Orders here amounted to SEK 12.3 billion, which is actually a strong 13% organic increase and currency impacted negatively by 12%. And to repeat what Helena already said, there was a strong underlying growth within equipment, where we had plus 22% organic orders received increase. And the large orders, the ones that are above SEK 100 million were at SEK 670 million this quarter, which is actually down from SEK 820 million in Q4 2024. So with lower -- with such an increase, but large orders actually at a lower level, it indicates a really healthy and widespread underlying demand. For service, we have an organic increase of 6%, and we have here the strongest growth achieved in the traditional service operations.

We don't often speak so much about regions, but today, I would like to do that. And in local currency, orders received increased with double digits in North America, in Asia, Australia, in Europe and in South America, so in most our geographies, while they actually decreased in Africa and Middle East, but that was against quite tough comparables. And the strong development in North America, which was up 29%, was supported by a large order of automated equipment, including then battery equipment.

The nickel exposure, which impacted us quite negatively in the first 3 quarters of 2025, still remain in Q4 and still remains despite then the recent increased mineral prices for nickel. We still have many customers with mines under care and maintenance due to these depressed nickel prices. However, in 2026, we will meet easier comps throughout the year.

If we look sequentially, we had an 8% orders received increase organic, and this was driven then by the mining. If we then turn into revenues and also profit for Equipment & Service. For revenues, we had SEK 12.5 billion, corresponding to an organic growth of 4% and also here then a rather negative impact from currency, minus 10%. And the organic increase in revenues for both equipment and service was 4%, respectively, which then means that the mix is the same as it was in Q4 2024. EBIT for Equipment & Service was SEK 2.7 billion, includes SEK 30 million in item affecting comparability in cost for mainly efficiency measures.

If we move to the right-hand side of the slide, we have then the adjusted EBIT, that was SEK 2.8 billion and a margin of 22.1%. This is down from 23.6% last year. And here, we have a similar margin pattern as for the group, where tariffs are burdening the EBIT -- sorry, both currency and tariffs are burdening the EBIT and the margin in a negative way. If we instead compare to the previous quarter, so we compare with Q3, we had a small increase on the operating margin for Equipment & Service.

Moving on then to the other business area, Tools & Attachment. Orders received here decreased with 7%, negative 11% coming from currency, which then implies that organically, we had a 4% growth for the business area. And in total, orders for Tools & Attachment were SEK 3.6 billion to be compared then with SEK 3.9 billion in the fourth quarter the year before. The organic growth was mainly driven by mining demand. As anticipated, the demand for attachment was seasonally weak and again, still being at a subdued level. Sequentially, we had a 1% increase in organic orders received.

Next slide, and we're now at Slide 15. Revenues for Tools & Attachment increased 4% organically and were SEK 3.7 billion. And the operating profit, it increased actually as much as 65% to SEK 537 million, which is up from SEK 326 million in the previous year, and this is the highest EBIT ever achieved in this business area. The margin came in at 14.9% versus 6.4% (sic) [ 8.4% ] in the previous year, but we did get some help from an insurance settlement gain relating to the acquisition of STANLEY. So what was this then? Well, when large acquisitions are made, it's often standard that you have insurance for uncertainties in the valuation of the acquisition. And in this case, we could use this in our favor.

If we instead look at the adjusted profit, then the margin was 12.3%. We compared with 8.4% a year ago. And this is then despite tariffs, currency and also continued weak construction market. The organic contribution to the margin was 5.2 percentage points. And much of this improvement is due to the hard work in adjusting the cost base within Attachments and also within STANLEY Infrastructure. Again, market is still at a low level, but what we see is that we're well positioned to capture market growth and also market share once the construction market turns more positive.

And while we are on Tools & Attachment, I would like to mention already now that this business area has quite an exposure towards tungsten carbide, especially in tools. And the prices for tungsten have more than doubled in 2025. And even if the financial impact in Q4 for us is still low, we are anticipating a margin headwind in 2026 of a few tens of percentage points for this business area. Mitigating actions are already in place. For example, we have accelerated our drill bit recycling program. And we already communicated towards our customers that prices will be impacted, and we are working proactively with suppliers, both on price and on supply.

Leaving the business areas and moving back on group level and coming to cost, net financials and tax. In total, the cost for admin, R&D and marketing were 3% lower, and this is due to lower expenses within marketing, while R&D increased somewhat. In percentage of revenues, it was 16.5% versus 15.9% last year, and we are continuously working on being more efficient on all of these cost items. Net financial items came in at SEK 115 million, which is meaningfully lower than last year. Explanation is partly due to lower interest net, but also due to exchange rate differences on interest -- on net financial items.

We had a tax expense in the quarter of SEK 742 million, which is very much in line with last year and corresponds to an effective tax rate of 24.0% in the quarter, which also is then in line with our guidance of between 22% to 24%.

Moving on to the cash flow. Our operating cash flow was strong at SEK 2.6 billion, however, clearly lower than the previous year's record level, which was SEK 4 billion in 1 quarter. In that quarter, we had more cash released from the working capital, but also in this quarter, we had somewhat lower profit as well as a bit higher paid taxes. The cash conversion rate is now 12 months rolling at 90%. It's not at the peak we had in last quarter of 105%, but still, it's at a very solid and good level for a company which has a quite strong organic growth.

And then part of the cash flow, of course, is the development within working capital. If we compare to the previous year, net working capital decreased by 9% to SEK 22 billion, down from SEK 24.3 billion. However, if we exclude the effect of currency, the net working capital actually increased somewhat due to increased inventories, partly offset then by increased payables. However, what I find most relevant is to look at our working capital in relation to revenues. And in the last 12 months, it has decreased to 36.9% versus 37.4%, which means we are using the working capital in a more efficient way now than we were a year ago.

Next slide then, #19, on capital efficiency. Our net debt decreased to SEK 11 billion, down from SEK 14.8 billion last year and then, of course, supported by our robust cash generation. Our financial position is strong. We have a net debt-to-EBITDA ratio of 0.73, which has improved from the end of 2024 when it was 0.93. Return on capital employed was 18.9%. It's down from 20.6%, and this is explained by higher intangible assets, including goodwill and also somewhat lower profit. And just as a reminder, these are rolling 12-month figures.

At year-end, we had a cash position of SEK 9.6 billion, and I'm sure you wonder now what we will do with our cash. First of all, we will keep on investing in organic growth. That is a key priority for us. Then we will do bolt-on acquisitions close to our core. We have not been so active in 2025 on the acquisition front. So it's fair to assume then that there will be a higher activity in 2026, but remaining close to our core in the businesses we know best.

And finally, we will distribute cash through regular dividend to our shareholders. And that brings me to my last slide of today on the dividend. And here, the Board of Directors proposes to the Annual General Meeting an ordinary dividend to shareholders of SEK 3.80 per share, which is the same as last year and equals SEK 4.6 billion in total. It also corresponds to 53% of our net profit, which is in accordance with our dividend policy. And the dividend policy says we should have stable or increasing dividend and it should be half of the net profit over the cycle. So very much in line with our policy. Dividend is proposed to be paid in 2 equal installments with the record date of May 7 and October 19 this year.

And with that, thank you, and Helena, back to you.

Thank you, Hakan. So let me finish then with some highlights from Q4. So we had a strong last quarter and achieved 11% organic order growth. For equipment, we had an even higher organic growth of 22%, high growth in demand for exploration, driven by a combination of a strong exploration market and a leading offering. Health activity in larger civil engineering projects and stable but seasonally low demand for attachments and organic contribution to the margin despite currency and tariff headwinds, indicating that our efforts are starting to yield results.

And what do we do expect onwards? Well, as we enter into 2026, we are well positioned to capture growth. Mineral prices are high for our main commodities, copper and gold. We are exposed to attractive performance-critical niches where our equipment and aftermarket makes a positive difference for productivity. Our customers show great interest in our solutions for automation, mixed fleet automation, digital safety solutions as well as for electrification.

We have a comprehensive and market-leading offering within exploration and we have committed employees who make a positive difference. So in the near term, we expect mining demand to remain high, while demand from construction customers is expected to increase somewhat from a low level.

So Karin, over to you.

Thank you, Helena. Thank you, Hakan. So before we move into the Q&A session, I'd like to say 2 things. First, a big thank you to those of you that answered our analyst survey. Your input is much appreciated, and we will do our best to improve further based on your input. For example, and this leads me to my second point, we will try to provide more information on our margin progression at our CMD in June. It's going to be hosted in Örebro on June 8 to 9. And if you have not yet signed up, please do. The seats are filling up rather quickly.

And for your information, Volvo AB will also host its CMD in -- when we do it, it's going to be on June 10 in Eskilstuna. It's just an hour away, and we are coordinating the logistics to make it easy and worthwhile to attend both events.

So without further ado, let's begin the Q&A. Please keep the questions short. And operator, you may open the line. Thank you.

[Operator Instructions] The next question comes from John Kim from Deutsche Bank.

I'm wondering if we could stay focused on margins for a second. Can you help us unpack the drop-through margins you're seeing in E&S and how we could think about the cadence of those as we go through kind of cost efficiencies in '26 and perhaps '27?

You said E&S, right?

Correct.

Okay. So what we see in E&S then if we compare with previous quarter, we see a slight improvement. We had -- and that improvement also includes then a positive organic flow-through. If we compare with previous quarter, we had somewhat worse mix within E&S because we had more equipment compared to service. But on the other hand, there are some of these efficiency actions that we are taking that are starting to yield some results as well within Equipment & Service.

If we compare with last year, it was -- if you exclude currency then it was roughly the same. We have somewhat negative -- sorry, not roughly the same. If we exclude currency then we had also a negative organic flow-through. What I was going to say is that it was roughly in line with the headwinds that we are seeing from the tariffs. So I think we had 0.6% right, in negative organic development, and we have said that we have roughly 0.5 percentage point from the tariffs.

Okay. Super helpful. And if I could ask again just on kind of the cost efficiency programs where we are there within the division and what levers you're looking to throw from here?

Yes. So in the BA Equipment & Service, it's -- they are not as large and as tangible as they are within the other BA where we are closing a number of factories. Within Equipment & Service, it's more general efficiency within our service operations. It's also making sure that we are efficient within our administration costs. And we are also working, as I believe we mentioned in the last call, we are consolidating a number of customer centers in order to make sure we are being as efficient in how we serve our customers as well. So they are not as large intangibles to say, now we close one factory, we're going to see a big impact from that. But we are not happy with where we are from a margin point of view for E&S, and therefore, we are taking a number of action there as well.

So sorry, just to finalize on that. If you look at the development, the organic development for Tools & Attachment was, of course, very strong in the quarter. And we started with taking more actions in Tools & Attachment earlier where we had deteriorating margins, while we are -- you can say -- you can call it that we are a bit later in the same process for Equipment & Service. So there should be more to come in terms of efficiency improvements for Equipment & Service.

The next question comes from Chitrita Sinha from JPMorgan.

I have 3, please. So the first one is just on the new construction guide. Could you just give a bit more color on how this has changed sequentially, especially in attachments given your unchanged comments on a destock amongst customers? And then should we expect a quicker pickup in attachments and therefore, a shift of mix towards higher attachments in the next quarter?

So if we -- there has been clearly a slow demand for -- towards the construction market for almost 2 years now. And on top of that, we have had this inventory reduction happening in our indirect channels that we have seen gradually now during the year has come to an end, meaning then that we get the true demand picture into our factories and into Epiroc. What we have seen is that we -- the dealers are more -- slightly more optimistic.

We are -- here, we -- of course, the big market for us here is U.S. and it is Europe. And we see a slight improvement in demand or we expect a slight improvement in underlying activity levels, but of course, from a low level. So that's how you should read it. It has been, of course, still it's a low level, but it's -- we start to see increased activities from a low level, which, of course, is good.

Sorry. And then just a follow-up, just on -- is there a shift in attachments going forward, given the comments there? I mean -- or is it going to be a similar sort of rate of improvement?

No. So no, it's -- I would say, the offering we're having, so it's the same type of product. So it's the same I say, mix of attachments. But of course, that has been I would say, burdened the growth for us for quite some quarters. Of course, with a slight pickup in activity level, we should then get that demand into our factories, given that we're successful in capturing that growth, of course, but I think we are prepared for that now with the consolidation we have taken as well.

Very helpful. And then my second question is on the T&A margin, similar to John's question on E&S. Could you please explain the moving parts sequentially? And then I guess, how should we think about a step-up in the savings from efficiency program coming through, especially in H1 as volumes recover?

Yes. So within -- as I mentioned when we talked about Equipment & Service within Tools & Attachments, we have taken more actions earlier than we have done in Equipment & Service. And therefore, we are seeing more of the result in the P&L as well. I think if we look at it -- I know you asked sequentially, but if we look at year-over-year, that's when we see the really big improvements coming from that we have consolidated factories. We have significantly less under absorption in Q4 this year than what we had in Q4 2024. Then sequentially, of course, the difference is a bit smaller. We are now at 12.3%. We were at 12.9% in Q2, 11.6% in Q3. So it's not a huge difference, but it is that we are seeing a bit more of the savings coming through also in Q4 this year compared to Q3.

And then maybe we could say as well that the consolidation of Essen and Kalmar, that has happened now during Q4. And of course, part of those savings, we can see in the P&L, but not the full savings. So of course, that we should start to see now moving into 2026.

But then just as a word on -- for T&A, I mentioned when I presented also the development of the tungsten prices, which then we expect to be a bit of a headwind for this business area.

Perfect. And my final question is just a quick one on nickel. Do you expect any positive development outside Indonesia given the price move?

I think it has been, as I say, the prices have moved now recently, and that's, of course, good. What we have seen with the customers where we have existing fleet in nickel, those machines are still -- some of those mines are still under care maintenance. So part of the fleet is still parked. So we have not seen an uptick in activity levels so far in Q4. But of course, if prices stabilize and continues up even more, then, of course, more nickel mines will then start to be reactivated again.

The next question comes from Edward Hussey from UBS.

So yes, just first one, can you give us a bit more color on how material the impact from tungsten could be in 2026? Any color on the magnitude would be massively helpful. And then could you also just explain why this hasn't been a headwind so far? Is there some kind of lagged effect on input costs?

If we start with the second -- yes, it's a lag effect. Prices have increased. But of course, we are sitting -- we have contracts and we are sitting on some inventory. So therefore, we haven't seen a material impact so far, but it will come now gradually starting basically from now. And then I mentioned that it will be a few tens of percentage points on the Tools & Attachment business area. That is our best estimate at the moment. It, of course, depends on our ability to raise prices with customers as well. But everyone is in -- all our competitors are in a similar situation. So we expect competition to act in the same way.

Okay. That's very helpful. And then just my final question, just on service growth at 6%. So you achieved this, I mean, despite a large order headwind in the digital business. But I guess, at the same time, maybe the nickel headwind is perhaps dissipated and the DRC is abating. I guess the question is, I mean, if I look at Q1 to Q3, where you averaged 2% growth, if you were to have excluded the DRC and nickel impact, would sort of 6% or higher have been more the growth rate we should have thought about if those headwinds hadn't existed?

I think it's -- if we look on -- as we mentioned, the nickel started to go down already in Q4 2024, and we had impact throughout the year. And we shared the numbers there last quarter, of course, majority of that drop is aftermarket. So that's a couple of percentage if that would not have been the case. Then the seismic activities in DRC, Kamoa being our largest account in that country, of course, that has also had a material impact. So I think you're not that far off in those assumptions.

And if I look on where we are right now, as I say, we still in Q4, see the headwind from the nickel activities is still -- has not improved. Last year, yes -- or 2024, yes, we had this large -- 2 large equipment or deals on digital. And I would say that the activity levels in DRC is coming back step by step. So that's -- it's going in the right direction. So that's the starting point right now.

The next question comes from [indiscernible].

The next question comes from Christian Hinderaker from Goldman Sachs.

Maybe I can come back to the E&S margin bridge, if that's okay. If we strip out Roy Hill from Q3, I think that margins are down sequentially 20 basis points as of today. I guess curious as what drove that effect. We know tariffs effectively, as I understand it, unchanged in impact. I know you guided previously that they would be less of a headwind in Q4 than Q3. And you've said that the mix in terms of E versus S has not changed. So I guess trying to understand why margins are down sequentially.

Well, first of all, Christian, I would say they are up sequentially. And then your assumption on ASI Mining, we didn't specify exactly what it was. We said it was negative -- below average for Equipment & Service. But we also have a negative mix effect. If you compare quarter -- Q3 over Q3 -- sorry, Q3 over Q4, if we look year-over-year, we have the same share of equipment versus service. But if you compare Q4 to Q3, we have somewhat higher equipment than we have 47% equipment in Q4, and we have 45% in Q3. On tariffs, they are slightly lower in Q4. We said around 0.5% in Q3, and now we say slightly below 0.5%. So that's relatively unchanged. But mix is definitely one factor between equipment and service.

Okay. But was mix not better because you said the strongest growth you saw in service was from parts and spares. So was the service mix not a positive?

Now we're talking 2 things there, Christian. One is that we're talking about orders. That's when we said that orders for -- within service was more traditional service. And then that is comparing Q4 with Q4 last year. And if I heard you correctly, I think your question was Q4 versus Q3, correct?

That's right.

And the mix that I'm trying to say is on revenue. So in Q4 now, we had 47% revenue coming from equipment versus 45% in Q3.

Okay. Maybe if we go to the tariff effect, I guess, I appreciate there's maybe a bit of decimal points here, but you guided last quarter, there would be less of an effect in the fourth quarter. I guess North American growth was the strongest by region. As we think about the book-to-bill or more specifically, you had 20% order growth in North America and 9% sales growth at the group level. On that basis, should we then be expecting an increased tariff effect as we look into 2026? Or do you think that you can mitigate that and so the tariff effect is either flat or down?

I don't think you -- North America, it's not U.S. So we have some -- Canada is contributing very strongly in the quarter as well. So I think you can -- it should not increase. It should go -- tariff impact should go down.

If you look at tariffs as a percentage of revenue, it should be lower in 2026 than what it's been in the last 2 quarters of 2025.

Okay. That's very helpful. And then maybe just a final short one. You mentioned the large service order already did on the fourth quarter of 2024. Can you just remind us when that -- has that been delivered or that's still to come in digital 2 orders?

That has been delivered. So that connectivity solutions.

The next question comes from Klas Bergelind from Citi.

Hope you can hear me now. Just to follow up there on the service growth, looking at orders of 6% growth. You did that still despite having pretty big headwinds from nickel and DRC. And during the last conference call in October, we talked a lot about the issues with the slippage of customer share. Now we have 6% growth all of a sudden, which is nearly 8% to 9% ex nickel and DRC in my numbers. The customer share don't move that quickly. So I was wondering what happened? Was there any sort of easy comp in a certain country? Or is the 6% sort of a new level and then add back nickel and DRC?

We have been working on growing our customer share a long time. The nickel impact is still there, so that is still a headwind. DRC is coming back step by step. So that is moving in the right direction. But we have the strategy to capture customer share, we have a number of initiatives ongoing. So it's both to work on, of course, on the pricing side, to be more precise. We have developed an alternative offering to capture certain customer types and certain segments as well as sourcing them in a more optimal way to be, let's say, competitive for certain segments.

So there's a lot of activities ongoing. And as I've been saying over the years to be more and more precise in how we run our, let's say, the service business and how to capture that potential that is there, the unserved part of the fleet that is a great opportunity for us. So I'm pleased to see the, I would say, the growth. So it's -- when I look at, let's say, the different countries or entities, it's nothing standing out as being extraordinary in these numbers. It's healthy, of course, healthy activity levels as well, especially towards copper and gold, of course, the activity levels is high, but also some larger rebuilds, et cetera. So I'm pleased to see that our efforts are giving results.

That's good to hear. So my second one is on capital allocation. You say that you will do bolt-ons and that you were not that active in '25, it will be higher activity in '26. I'm just trying to understand where the gaps are. Obviously, mine planning, for example, is an area where you could get stronger versus some of your peers. I'm just trying to understand the margin profile because when you say that you will do more M&A in '26, Helena, I was under the impression you to improve the margin in what you acquired first before doing more M&A? Or are you targeting more margin segments? I mean mine planning, for example, is one of those areas where the margins typically are quite high. So just understand a bit in terms of the margin profile of where you want to go.

Yes. No, it's more core products where there are some gaps close to the core that we have always had. So it's -- and aftermarket, I would say. There's always opportunities to capture customer share as well in the aftermarket. So it's more -- it's close to core, not maybe further out and maybe not so much related to new technologies. I think we have a very comprehensive offering. And there, to your point, we have -- we should leverage organic growth from all these acquisitions that we have done over the years and get the synergies from those acquisitions. It's more close to the core products -- physical products and aftermarket, say, parts and service.

Okay. That's good. A quick and final one is on the digital offering, just to sort of connect there. And obviously, you need more units here to scale that business and get the margin up. And having spent time with you on the road and from feedback from investor meetings recently, the message seems like that you underestimated how quickly you could ramp mixed fleet, Plan and Protect around Radlink, et cetera. You didn't have the right people in place to sell these solutions. That seems to be changing now to the better. You now have Jess Kindler running E&S. Can you please talk, Helena, how you think -- if you think that you're a pivot point in terms of being able to ramp the units higher here in digital. Certainly, it seems like there is a lot of interest from your customers, but curious to hear.

No. But this is, of course, one of the rationale as well behind creating the business areas that we have done because now we have one leader that can then make sure that we make sure that we bring in our digital offering into all the large tenders we have for equipment, for example, or where we have the largest fleet or the largest contracts already for parts and service. So a lot of the digital offering that we have built over the years, of course, first, it's a number of companies. And then from those companies, you develop an offering, and that is done now.

So we have one offering now that is an Epiroc offering. And then to scale that through our customer centers and leverage the strength of the installed base we're having the strong customer relationship, the big deals, that's what I'm -- that's the task now of Jess Kindler.

The next question comes from Alexander Jones from BofA.

The first, if I can, just back on the Tools & Attachment margin. Clearly, quite a strong organic contribution to the profit bridge year-on-year. Are you able to give us a sense of how much of that was the efficiency measures compared to the drop-through volume growth or other organic elements in the bridge?

I would say quite a large portion was related -- the majority of the portion was related to efficiency measures. Of course, we had organic growth in terms of revenue as well, but the majority was actually efficiency measure. I would say especially less under absorption given that the attachment business especially has been weak, most of the actions taken -- a lot of the actions relate to attachment and also then making sure we are more efficient in our production footprint, and that has yielded results now in the last few quarters.

Okay. And then maybe one follow-up on the tungsten point. Can you give us a share of costs of the division, if that's a number that you have to hand of tungsten, just so we can sort of play with the sensitivities as the tungsten price continues to move around?

No, I think we stick with what we said that our best estimation right now is that we are looking at the potential headwind of a few percentage points on the business area margin -- sorry, a few tens of percentage points during 2026.

The next question comes from Magnus Kruber from Nordea.

Magnus here from Nordea. Continuing on the questions around the efficiencies in Tools & Attachments there, it's obviously a very solid tailwind you had now in this quarter, if that's right, majority of it coming from that. Can you help us a little bit with how we should expect this to develop in the EBIT margin bridge for the coming quarters? Is that tailwind going to ease here going forward? Or are we sort of having more to come from that?

But I think we -- if I look -- of course, some of the actions we have full effect in the P&L in Q4, for example. But there are those activity levels -- activities like the closure of Essen, for example, that happened physically, the move happened in Q4. Of course, we have -- you start to downsize a site earlier before you move the equipment, but that's an upside moving into 2026 now.

So -- and then, of course, in -- we have also announced the closure of the Langley site that's also in this business area. So also that will happen even though it will be later this year.

But if you mean, Magnus, if it's going to ease, like are we going to see 5.2 percentage points every quarter? No, we're not. But there's actually -- but if your question is more, is there more to come, yes, there's still some more to come given then the full impact of Essen, which should come and then later on, more rather 2027 also then this closure of the factory in Canada moving into Mexico instead.

Okay. Got it. And then separately, I noted you didn't have any sort of publicly announced orders in Q4, but still the large order is pretty healthy in that context. Could you talk a little bit about the outlook for large orders going forward? Is it improving? Or do you expect a stable development?

We expect a stable development. When I look at the business cooking, which is -- we measure it 18 -- the projects that are in the pipeline in the coming 18 months. It's a healthy number of projects across, I would say, the different commodities, a lot towards copper and gold, also replacement towards iron ore. But majority is brownfield expansion and replacement of existing fleet. Not that some greenfields, but majority, we don't see like a booming greenfields. I think that will happen step by step over the coming years, but a healthy pipeline.

And do you see the project economics of some of the more sort of easy greenfield projects? Is that sort of improving with the recent uptick in copper prices or...

Yes. Of course, if the price stays on this level, of course, it incentivize those type of decisions as well as gold.

The next question comes from James Moore from Rothschild & Co Redburn.

Can I just follow up on 2 topics. On the Equipment & Service margin, if you're down 60 bps organically and you mentioned the 50 bps tariff impact, it would sound to me like the majority of the decline related to that. I just wonder whether you think you can pass that on and what the timing of that would look like? And I guess tied to that, how is pricing? You talk about specific actions. But could you quantify whether order pricing has sort of moved up? Is this a lag that you're just behind the curve and you'll pass it on? Or is that demonstrative of actually facing some net negative? And then I'll tag on a second one, if I can.

But I think there is a price component, of course, when it comes to tariffs, there is a lead time in -- but it also depends on in a quarter, it can depend on how much you move into a country during that quarter, for example. So -- but of course, there is -- there has been a time lag in our ability really to increase prices even though we have compensated for part of the tariffs, but more work is ongoing.

Okay. And one other on Equipment & Service. Could you say whether the decline in margin was similar in service to equipment or whether one of them has come down more?

On the tariffs, sir?

No, on the margin.

No, we will not comment on that. But we continue to focus on improving the overall performance of the business area of the segment.

Great. And if I could try one on Digital Solutions. Would it be possible to roughly quantify the organic order growth and organic sales growth for the full year of '25 for DS? And could you say whether the margin dilution that you had in the full year was similar to less than or more than that, that you had in 2024 when that was a topic.

So orders in 2025 was less than orders 2024.

Partly because we have this, as we talked about before on the call, these 2 large connectivity orders in Q4.

Then a lot of -- on the efficiency, of course, there, we're working on efficiency as well. But I think for digital, it's more about scaling and making sure to leverage the, I would say, the different solutions now and leverage our footprint in -- among customers to really grow the top line.

So with that, I have to interrupt unfortunately. James, you can give Alexander and myself a call later. We can further debate this. Thank you, everyone, for dialing in. We have taken a list of the names that are remaining. We will call you. Thanks very much, and don't forget to sign up for the CMD.

Thank you, everyone.

Thank you very much.

Hello, and welcome to Deutsche Bank's Virtual Investor Conference, dbVIC. This is Zafar Aziz from the Deutsche Bank team. I'm pleased to welcome our next presentation by Epiroc from Sweden.

Before I introduce our speaker, a few points to note. Please click on the questions box to ask a question. All of today's presentations will be recorded and can be accessed by the Deutsche Bank website, www.adr.db.com.

I'm happy now to hand over to Epiroc.

So thank you very much, and a warm welcome to everyone here today to present Epiroc is Alexander Apell, my colleague in IR team, and my name is Karin Larsson. We are very eager to present Epiroc. I've been with the company for 11 years. Alexander is moving on to his 8th year. So we are looking forward to present a very good mining equipment company.

So moving on with the presentation, I would like to start with the safety share. As you know, the mining industry is quite dangerous, and the last few months have actually been a sad reminder that it's a dangerous industry. But there are highlights, and we would like to start with one of ours. And it was not a customer of ours, but it was the Red Chris mine in British Columbia in July, where a mine collapsed. And three mine workers were stuck in the mine, 284 meters below surface in a refugee station. And what happened was the customer called Epiroc and said, "We need your mixed fleet automation kit" because we are very known to the mixed fleet automation. And within 24 hours, we managed to fly the kit to this site, install it on a non-Epiroc loader, and this loader was then used to rescue these three mine workers. And this is an excellent example on how technology and also OEM-agnostic interoperability, those solutions can save lives in mining.

So Alexander?

Yes. And I would like to start with a little bit where we come from or where we'll be going. So basically, why we exist is to accelerate the productivity and sustainability transformation within our industry. And we are being given the tools specifically to do so, so we began a separately listed company in 2018. And we like to identify ourselves as a 152-year-old start-up company. So basically, we were part of Atlas Copco for 145 years. But then in 2018, we were separately listed on the Stockholm NASDAQ exchange. And if you look at our orders on the slide to the left here, you can see that we have come from roughly SEK 39 billion to SEK 63 billion since the listing. We have around 19,000 employees globally. We have a large portion of our business that is aftermarket, roughly 67% and only 33% is related to equipment. And on the right side of this picture, you can also see the geographical split, and this varies a little bit from quarter-to-quarter, but often we are fairly strong, especially in North America, Australia, but we have a global presence.

Yes. And what do we do? I mentioned mining, and I mentioned mining equipment. So we are a mining equipment company, but we also serve infrastructure customers. So if you look at this graph, you will see the split of orders received and about 22% of our orders are from infrastructure customers, and the rest, 78% is mining. And if you look to that exposure specifically, you will see that copper and gold make out more than 60% of our orders received. And we do actually anticipate by 2030 that there will be a deficit of both minerals, which would bode well for the extraction of these minerals and also the potentially the sales for equipment to extract these.

And our strategy, if you have followed Atlas Copco historically, we were a part of that company. A lot of that strategy is also the ones we have. So we try to find attractive niches. That means niches where the equipment is used and is critical so that we can get a lot of aftermarket. We try to sell the best equipment. We try to be in the forefront of the industry, and we will both tell you more about that very soon. But it also means that because of these harsh environments and the performance critical equipment, there's also a high proportion of aftermarket, Alexander said, 67%, and that's roughly 2/3 historically, that's been the aftermarket business, which is both profitable and resilient.

We tried to work for operational excellence, always to do things in a better way, and then we try to reach our performance. But the strength in Epiroc is really the people we mentioned briefly by saying how many years we've been with the company and many in these companies, they stay and they stay on forever. So we have a very strong culture and we have a very strong mindset in trying to make not only the customers richer, but also the world a better place.

And on innovation, if you look to the R&D spend to revenues at Epiroc, you will find that it's about 3%. It's not super much, but please note that the equipment portion was about 1/3 whereas the rest was aftermarket. And obviously, we pay the most money and invest the most money for the equipment part. So we would say maybe the 9% of the equipment revenues goes to R&D. But then again, we are also only more or less an assembly company because we produce the core components only, the secret ones, the ones that make the biggest positive difference.

So we work a lot with sub-suppliers and contractors which in turn means that they also have innovation. So we have a huge leverage on the innovation that we put into the equipment. And if you look to the new sales ratio in 2024, the equipment that we sold was actually launched within the last 5 years.

And within the industry that we operate in, we do see three megatrends that we invest a lot into to make sure that we are in the forefront. So those are automation, electrification and digitalization. So I will start going through a little bit about automation. And for example, on this picture to the left, you can see one of our flagship products is called the Pit Viper is a platform-based surface rotary drill rig. And if you were to automate one of those machines, we have seen that you can boast productivity with up to 22%. You can also reduce your cost base by up to 40% and then substantially lower CO2 footprint. So it made so much sense to choose automation solutions when you buy new equipment. And foremost, I mean the most important aspect is that you take away people from dangerous situation. So we look really right on this technology going forward.

But we have actually decided to take this one step further, not only automating our own equipment sold, but also to automate other OEMs equipment because the typical customer behavior is that they don't buy from just one OEM. They will buy from multiple OEMs because they want to have the best equipment for whatever application they need it for.

So one example is that we are currently creating the world's largest OEM-agnostic autonomous mine in Australia. So this is a remote mine site in the Pilbara region. We were not original equipment manufacturer supplier to this mine site. So basically, we are putting our technology on Caterpillar and Hitachi trucks.

So currently, we -- actually, recently, we achieved a milestone and we have automated all 78 mine trucks to fully autonomous mode. So operators will be observing what is happening at the mine site. So the customer can reduce the number of headcounts substantially on the mine side. and also productivity has boosted quite a lot at the specific mine. So we reached the milestone in October, and we were able to invoice the customer around SEK 300 million. So we are -- this is something we are super excited about going forward.

And when we talk about automation, there's -- we'd like to talk about a ladder because this is a journey for our customers because historically, it has been a very human operator-based industry. So the first step in this journey is to take the operators out of the machine to operate the machines with a joystick, remotely controlled basically. The next step is to do the -- maybe the drilling automated. And then as I said before, we are taking it one step further to do the mixed fleet automation for both [ loan ] and all, but obviously, including drilling into this as well.

Yes. And this is nothing unique. We think OEM-agnostic in most things we do. So when Alexander told you about automation, we are definitely in the forefront on OEM-agnostic automation globally. But we think in the same way about electrification, and that's the second big trend that we see. And if you look to the left here on the graph, you will see that if you replace all your drilling rigs, the loaders and the trucks in your mind, and this is an underground mine in Australia. You would save about, say, 29%, 30% of your carbon emissions. But the sweet thing with going electric underground is that you see a lot of ventilation.

So basically, if you have a diesel machine, you need like 7 meters of air flow per second versus a battery electric or electric machine where you only need 1 meters of air flow per second. And not having to -- because when a mine goes deeper and deeper, every day or wider every day, you need to turn on that fan capacity. And at some point, you also need a new ventilation shaft. That's very expensive. But 40% of the OpEx in the mine can be ventilation costs. So by not having diesel machines underground, you save a lot of ventilation, you save a lot of OpEx, and you save a lot of emissions.

So we do believe underground mining, this is going to happen in some form or other. And if you look to our electrification offer as such, we are now moving from the first movers to the fast followers, and the group revenues from electrification-related products is 4.2% in 2024. And we saw that the BEV, battery electric vehicles the utilization rate more than doubled in 2024 and more than 39 mining sites globally use electric solutions from us today, and about 1/3 of those have actually chosen to buy more, which is very encouraging given that it is a new type of technology.

And if you see to the left here, we speak a lot about different things. But if you see here, it's like we have the diesel electric like hybrid, we have battery electric with Trolley, we have fully electric, and we also have cable electric. So we do believe that electric mining will be in the future.

And you spoke about automation and I speak about electrification. And you can actually combine them. So in April, we actually announced the largest contract in our history, SEK 2.2 billion over 5 years from Fortescue in Australia and they will buy surface equipment. So electrification is not only happening underground is also happening above ground, and it's going to be -- they are really in the forefront for the SKU when it comes to being the most sustainable mining company in the world.

So speaking a little bit about the last megatrend, the digitalization. So for the customers, increased safety and productivity is the key. And one example is the evacuation time with some of the safety feature we can offer that up to 40 -- 25% to 50% lower vacation than we have seen. But there is a lot of low-hanging fruit that be reached with these type of solutions. And one example is collision avoidance. So here, we are able to offer the highest level of collision avoiders, Level 9. So basically, the machine will stop by itself if something is in front of it and we were actually glad to see that one customer, Hindustan Zinc order for older mines in India, our collision avoidance system, and we announced that during the call.

Yes. And speaking about safety, again, about 40% of the people that die in mines is because they or the vehicles they are in is overrun by larger vehicles. So the coalition avoidance systems are really critical.

Looking to our offering and reporting structure, you will see that we have two business areas. It's Equipment & Service and Tools & Attachments. And you can see here on this page how we separate them. But again, like 2/3 of our revenue stream is aftermarket. And then beneath the business areas we have separate divisions, and it's the division presidents that are the highest operational entity in Epiroc, making sure that they have profitable growth.

And looking at the equipment fleet. Since we were listed in 2018, the fleet of machines out there is bigger than ever. And the fleet age is also older than ever, and all of this bodes very well for recurring growth and more growth into the service and aftermarket space, of course. And then we had this business area that is not equipment, it's not service, but we call it Tools & Attachments. And basically, what we do here is the best drill bit, the best attachment when you remove hard rock because we haven't really said it yet, but we are a hard rock company or hard foundation company. So everything that you need to remove that is hard, that's what we do the best.

And on the top here, you see that we have a drill bit on a drill rig. So here, the yellow circles represent what we provide. So Epiroc, we try to provide the best equipment with the best service and also the best rock drilling tools in giving the customers the best performance.

In the attachment space, you can use any supplier of an excavator and you can hopefully have the best service from your provider of excavator, but then you add the best attachments. And here, I say it's like when you work in the garden, you have a garden glove. If you want to drive the motor cross, you have a motor cross glove, if you want to work with electric things, you have an electric glove. So we do the best attachment for hardware performance. And they're helping the customers to reach that.

Looking a bit into financials. If you've been looking into our share price, you have seen it's been coming down the last week since we had a report. So I just want to briefly say what's going on. And looking to Tools & Attachments to the right of this side first, in 2023, the second half of the year, we actually started to see the construction market turning down, and that impacted the attachment severely. So the margin is has been going down. But in Q3 this year, we actually are at 11.6%. So here, the measures taking are starting to show off.

If you look to Equipment & Service in the middle of the picture, the weakness is rather explained by service mix, which means that either we have sold more equipment or within service, we have actually sold that part of service including digital, it comes with a lower margin. And here, we are working hard to improve margins onwards. But as you see, it's a proud still around 20% EBIT margin at Epiroc, and we strive to have the highest industry-leading margin.

So how have we done historically, if you look a bit further back? Well, orders since we were listed or since Q3 actually, Q3 in '18, we have had orders CAGR of 8%, revenue also CAGR of 8%. EBIT and adjusted EBIT, we have grown by 9% and 8%, respectively, EPS 8%, but the surprising thing is the cash flow. We have a large portion of service and aftermarket, and we are a cash-generating company.

So if you look to our financial goals, we would like to grow 8% per year over cycle. And since '15 to '24, looking 10 years, we have been able to grow 9% per year. In 2024, we grew 5%. We lost quite a meaningful portion in the construction market. Profitability, industry best, as I just mentioned, we've been at higher level, but we're striving to get back to where we have been, maybe not peak '22, but at least back to historical level. The rest -- yes, we try to be efficient basically.

And cash is definitely king at Epiroc. And as Karin mentioned, we have a large portion of our business that is aftermarket, generating a lot of cash.

So what do we do with all the cash that we generate? So we prioritized to innovate, to continue being the leader in the technology change within the industry. We're also focused on acquiring new companies within the group.

And thirdly, we'd like to pay our shareholders. So we have a target of paying out 50% of net profit as dividend, and we have done so every year since we got listed. And one year, you can see the yellow bar here on 2020. we actually give an extra dividend because we were sitting on too much cash.

And I guess I also want to mention some of the goals we have for 2030 when it comes to people and planet. So safety first, we don't want to see any work-related injuries. We also want to have a balanced workforce and double women in operational roles. And I mean a lot of companies speak about doubling the number of women, but I mean we want to do -- double the number of women who actually can make an impact, who has a P&L responsibility.

Then we had some targets when it comes to CO2 emission reduction. So both when it comes to operations, when it comes to transport. And -- but the trickiest one would be the CO2 emissions to have that for sold machines because when we have sold a machine, it's a little bit out of our control. So here, it's absolutely crucial for us that we succeed with selling more electrical machines, more automotive machines, et cetera, in order for us to reach the targets.

Looking -- I mentioned briefly, we had our quarterly report last week, some highlights from that report before we wrap this up. So Alexander mentioned the Roy Hill mine, where we create the largest full autonomous mine, also Hindustan Zinc, where we have -- will provide them all their mines with collision avoided systems. We also had the Pit Viper, Alexander briefly mentioned it. It's like the most iconic drill rig, and it celebrates 25 years.

We do see high mining demand, strong order growth. Equipment grew 10% organically in Q3. And we do also see that the weakness in construction that I spoke about, the destocking phase among distributors is largely complete, which is rather encouraging onwards. And the margin did decrease, but we do see that the actions in Tools & Attachments, the business area is actually yielding results and more than compensating the negative effects of increased tariffs.

And the cash flow, as Alexander said, it's strong and it decreased 38% year-on-year to SEK 2.5 billion.

And before we go to questions, what do we expect onwards? Mining demand will remain high. Construction customers, we -- it will be stable at a low level. And we host our CMD in June in Orebro in Sweden, and Volvo AB is also hosting their CMD in June in Sweden in the next day. So if you have time, come to Sweden next year, and now we are open for questions.

And the first question is related to mixed fleet automation, is are there are opportunities for additional mix fleet conversations and other mining customers globally? And the answer is yes, it is. It's a really great interest for customers. We have been very hesitant in taking on another project why we were doing the Roy Hill one because the worst thing that could happen is that something goes wrong with this technology because this is new technology after all. And then all customers will basically take a couple of steps back. So we really wanted to nail the technology with this customer before we were work to open order books for another project. But there is definitely a great interest from our customers for doing another Roy Hill eventually.

Yes. And we are quite unique in this mixed fleet. So a lot of interest, and we've had the project for 5 years with Roy Hill. So we have proven the concept, and we are opening the books for more orders.

Another question we got is, can you share insights into any recent customer wins for large contracts that are expected to materially impact results and how these deals were secured? And -- we did mention the Fortescue, SEK 2.2 billion, but that's over 5 years. So I wouldn't say that it's meaningfully impacting our results. There are a lot of mines globally. We have a lot of machines globally, 50% of equipment growth of equipment is actually replacing worn out machines. So there are a lot of exciting things ahead but I wouldn't say that anything particularly will really change the way Epiroc works, but we do see good growth opportunities.

And another question about this, could you provide more insights into how the company is mitigating supply chain and tariff risks, particularly for Tools & Attachments?

So basically, we do a lot of rerouting, we try to mitigate it as much as possible. If we look at the competition side, we are very much in the same boat as our main competitors, both when it comes to underground equipment, surface equipment and also a lot on Tools & Attachments. But for example, instead of using the U.S. as a hub for shipping spare parts or tools to Canada, Mexico, then we have rerouted the shipments from -- straight from our factories, could be in India, could be in Sweden, to Denmark its in Canada or Mexico as well. So we try to mitigate, of course, it will cost a little bit more, and it will take a bit longer and we will have a little bit more inventory. But at least we don't have to pay all the tariffs on those.

Yes. We also got a question on how tariffs weighted on Q3 profitability. And it was approximately 0.5% on the group EBIT margin. And we have taken measures, and we do hope that it's going to be less in Q4. But that said, it's a very moving material, and it's hard to foresee and predict how the tariffs will change.

Should we take one more question before we round this off?

Yes.

Maybe this one, can you speak to your pipeline for new product launches? And how quickly do you expect major contracts like Fortescue in Australia to scale revenues?

I would like to mention the Minetruck 66. So basically, today, Epiroc has the most popular underground 65-tonne payload truck. It's like a bread and butter business in trucks underground. Now we have launched a 66-tonne truck that is hybrid solution, and we think that's going to be a big popular truck. And when we speak about Fortescue and the deal, I would say that it's a contract over 5 years, and we have only booked SEK 100 million in the orders received for that contract as of now. And the way you should think about it is that the orders received, you see for Epiroc, they will materialize to revenues in 6 to 9 months. So we only book those orders that we are actually trying to produce and ship to customers and also invoice. So we have good visibility on what's coming in revenues.

Perfect. Thank you so much, everyone, for listening in.

Thank you very much. And reach out if you have any questions. Alexander and I, we're more than happy to help you. Thank you.

Thank you. Bye-bye.

Hello, and a warm welcome to the Epiroc Q3 results presentation. My name is Karin Larsson, Head of IR and Media here at Epiroc. And by my side, I have our CEO, Helena Hedblom; and our CFO, Hakan Folin. As always, they will briefly present the results before we do a Q&A session. You know the drill.

Helena, please, the stage is yours.

Thank you, Karin. And also from my side, a very warm welcome to all of you. So before we dive into the numbers, I want to begin with something that lies at the heart of everything we do, safety. The past few months have been a sad reminder that mining remains a dangerous industry. One incident that stands out is the ground fall at the Red Chris Mine in British Columbia in Canada this July. The workers were trapped 280 meters underground. And within just 24 hours, Epiroc was called in to deploy our RCT teleremote automation kit on a non-Epiroc loader and we did it. And the machine was then operated remotely, digging through collapse ground toward the refugee station. So after more than 60 hours underground, all 3 miners were safety rescued.

So this moment is a powerful testament that fast action, automation and collaboration can save lives. Because at the end of the day, the best thing that comes out of a mine is the miner. So during the quarter, we celebrated several important milestones since I just shared an example around safety. Let me highlight 3 more that underscore our leadership in this area. So first, we reached a major breakthrough at Hancock Iron Ore Roy Hill mine in Australia. So all 78 mining tax non-Epiroc ones have now been converted from a manual operation to fully autonomous using Epiroc's LinkOA solution. And this is a great achievement, which really positions Epiroc at the forefront of mixed fleet automation globally.

My second highlight is our strategic partnership with Hindustan Zinc Limited, the world's largest integrated zinc producer, which awarded us with a large contract for a collision avoidance system in the quarter. All of their mines in India will, in the future, be equipped with our collision avoidance system. And as with most of our solutions, it is OEM-agnostic, designed to work seamlessly across any vehicle platform and it's a cost-effective way to significantly enhance safety across existing fleets.

And thirdly, I would also like to mention the celebration of our Pit Viper rig turning 25 successful years with a full decade of autonomous drilling. And the rig has revolutionized surface drilling by combining power, safety and energy efficiency. With over 90 million meters drilled autonomously and significant emission reductions, the Pit Viper has set a new benchmark for sustainable and productive mining operations worldwide.

So turning to the customer activity then in Q3. The demand in mining remained high and especially within exploration. And after a prolonged period of subdued demand for construction-related attachments, we're now seeing a small recovery in order intake as the destocking phase nears completion.

On the financial side, our operating margin declined primally due to tariffs and costs relating to efficiency measures. That said, the actions we've taken, particularly within Tools & Attachments, are beginning to show positive results. And Hakan will elaborate on EBIT and margin development shortly.

Finally, I'm more pleased to report that our operating cash flow increased by 38% in the quarter to SEK 2.5 billion, supported by an improvement in working capital.

So looking into the deals on the orders. In Q3 in total, orders received decreased 2%, hampered by currency, which impacted with minus 9%. In total, our orders amounted to SEK 15.1 billion and organic order growth of 7% despite tough comparisons of plus 6% in the previous year that reflects a high mining activity. We achieved the strongest order growth in equipment, tools and exploration. Large mining equipment orders, which are lumpy in nature, amounted to SEK 600 million. And it's encouraging also in this quarter to see that many of our equipment orders include our latest technologies, both in automation and electrification, leading to higher productivity, increased safety, reduced energy consumption and a lower total cost of ownership for our customers.

And again, we now see a recovery in the order intake for attachments as the destocking phase is largely complete, and that is both in Western Europe as well as in the U.S. Sequentially, compared to the previous quarter, orders received were unchanged organically.

So let me turn to innovation, where we continue to lead the way. And I will start with Powerbit X, revolutionary drill bit fortified with diamond protection. At remote gold mine in Canada, Machine Rogers International has tested our diamond-coated Powerbit X with outstanding results. Bit life increased from just 5 to 10 meters to over 700 meters, boosting productivity by 125% per shift. Monthly bit usage dropped from 70 to just 12 and with no need for regrinding, carbon emissions fell by 90% per drill meter. And as autonomous drilling becomes more and more important globally, the demand for high-performance drill bits, such as the Powerbit X is essential to unlock new levels of productivity and sustainability.

I would also like to give you some more information about our collaboration with Hancock Iron Ore Roy Hill mine in Australia because it truly is a unique achievement. All 78 haul trucks have now been converted to fully autonomous operations, creating the world's largest OEM-agnostic automation mine or automated mine. The non-Epiroc fleet is operating seamlessly under Epiroc's automation system. And the real time traffic management is handled remotely from operations center located 1,100 kilometers away in Perth. And to date, this autonomous fleet has safely moved over 250 million tonnes of material and traveled more than 6 million kilometers, which corresponds to going around the globe 150 times.

The final phase of the project is on track for completion by year-end and to deliver these high and mixed fleet automation projects, you need the highest connectivity quality and that we have managed with the help of Radlink, a fully owned connectivity provider. In Q3, we recognized SEK 300 million in revenues from this project, and we expect recurring revenues going forward. And after years of development and learning, we are confident that this solution is both productive and safe, and we are now ready to scale to more mines. So let me share a video of our LinkOA offering.

[Presentation]

Our aftermarket revenues accounted for 66% of total revenues in the quarter with the Tools & Attachments representing a growing share of the mix. The strong demand from the mining sector continued to drive solid revenue growth across both tools and service. For attachment, we see that the destocking phase is nearing completion, which is encouraging, but it's still low levels and the second half of the year is typically seasonally weaker for our construction customers.

So moving on to operational excellence then. We continue to take actions to strengthen our resilience and drive profitable growth. Our tariff mitigation strategy includes optimizing logistics and distribution flows, leveraging our global manufacturing footprint and adjusting our supplier base including key inputs like steel. Of course, we're also implementing price increases to compensate. We are consolidating production sites with particularly strong progress in our Attachment division. And the closure of Essen facility and the transfer of production to Kalmar is well underway. And Kalmar has now emerged as a central hub for [ brake ] production with state-of-the-art technology and automation.

In parallel, we are investing in Nashik in India to create a global production and R&D hub for equipment, both surface and underground. And the new facility will include production halls, prototyping labs and outdoor test tracks. This investment aligns with our Make in India strategy and strengthens our presence in a key growth region. Another measure that we take to improve efficiency is to consolidate several of our customer centers into larger regions. And as we announced in September, we have implemented business areas. Equipment and Service is led by Jess Kindler, and Tools & Attachment is under the leadership of Jose Manuel Sanchez. And the business areas will increase customer focus further and secure the strategic direction of Epiroc going forward.

So moving on to our sustainability performance on safety. I'm pleased to report that our total recordable injury frequency rate improved yet again and is now 4.1%, down from 4.4%. And this reflects the strong engagement across Epiroc to safety. We ended the quarter with about 19,000 employees and of our workforce, women now represent 20.3%, and our managers women represents 24.9%, both metrics up meaningful since last year.

On the environmental side, our CO2e emissions from operations increased by 7%, primarily due to expansion of operations and reduced availability of renewable energy. Our transport-related emissions rose by 2%, driven by higher delivery volumes. And while these increases are not where we want to be, they are a direct result of our growth, and we remain committed to reducing our footprint going forward. And also in the quarter, Epiroc was awarded a gold medal by EcoVadis, placing us in the top 2% globally among more than 150,000 rated companies. And this recognition reflects our strong performance in sustainability, ethics, labor practices and procurement.

So with this, I invite Håkan to speak about the financials.

Thank you, Helena. Our revenues in the quarter decreased 3% to SEK 15.2 billion, which is corresponding to an organic increase of 5% and currency impacted negatively by 8%. The aftermarket represented 66% of revenues in the quarter, which is 1 percentage point lower than in the comparing period. The meaningful difference is, however, for service, where we have 2 percentage point lower revenues this year compared to the previous period, which is then a negative mix impact.

The operating profit, our EBIT was SEK 2.8 billion, and it includes item affecting comparability of SEK 94 million. These are mainly related to efficiency measures we are taking. The change in provision for the share-based long-term incentive program was rather small at SEK 1 million.

The adjusted operating margin decreased from 19.7% to 19.0%, and the margin was negatively impacted by tariffs. We work hard to mitigate the negative effect of tariffs, as Helena just told you, that said, still, the net estimate effect on the margin in the quarter was roughly 0.5 percent point on group level. The EBIT impact from currency was negative in absolute terms, minus SEK 230 million, but it was actually positive with 0.2 percentage points on the margin, and this is mainly due to that we have some revaluation of internal profits.

If we then move on to Equipment & Service. So for this segment, orders amounted to SEK 11.4 billion, corresponding to a 6% organic increase. And also here, we have the negative currency impact, 9% for this segment. There was a strong underlying growth within equipment. It was plus 10% organic. The large orders, and we define them as above SEK 100 million, they were SEK 600 million in the quarter. We can compare this with Q3 last year when they were actually SEK 1.4 billion, so SEK 800 million difference there. The large orders are, as we always say, they are lumpy in nature. When we look ahead, we see many interesting projects and tenders that we are involved in. Service had an organic increase of 2% with the strongest growth achieved within what we call our traditional service operations. And within digital specifically, we achieved good growth in our safety solution, which is an area within digital that comes with high gross margins. So that is pleasing to see for us. If we look at it sequentially, orders received were flat organically for the segment. If we then look into revenues for Equipment & Service, we achieved SEK 11.5 billion, which corresponds to an organic growth of 6%. And again, a negative currency impact, 9% on the revenues. Equipment revenues were strong, increased 10% organically. Service revenues increased 3% organically. We recognized revenues from the Roy Hill project around SEK 300 million in the quarter, and that is diluting to the margin. This is, as we have talked about many times before, an innovation project, and we are very happy with the milestones we have achieved now.

Another thing impacting margin negatively was reduced customer activity in the nickel segment. And if we compare year-to-date with the same period last year, we have lost about half of our business in nickel due to many mines being under care and maintenance. That means they are not producing at the moment. EBIT in total amounted to SEK 2.4 billion. That includes SEK 101 million in item affecting comparability in costs for mainly efficiency measure.

Last year, we had a net of plus SEK 208 million affecting items, affecting comparability because we had a positive revaluation effect of shares of ASI Mining and also impairment of tangible assets.

If we move then to the right-hand side of the slide, we have the adjusted EBIT, which was SEK 2.5 billion, corresponding to margin of 21.9% and down from 22.9% last year. And we have a similar margin pattern here as for group with tariffs burdening both EBIT and also margin in a meaningful way. And also FX is similar as it is for the group. As we talked about before, then we have a lower portion of service this year, which then impacts the mix.

If we then move on to the business area, Tools & Attachment. And here, orders received increased 1% in total but if we look at it organically, they were up 8% to SEK 3.7 billion. Currency, on the other hand, impacted negatively here as well by 8%. The growth was mainly driven by mining demand, which was translated into a strong tools demand. But also following a prolonged period of low demand for attachment used in construction work. We are now seeing a small recovery in the order intake. And it's not really because underlying demand has increased, but the destocking phase among distributor is now largely complete. Sequentially, orders received were flat, positive growth within mining, Attachment seasonally weak. Revenues for Tools & Attachment increased 4% organically and amounted to SEK 3.7 billion. Operating profit, our EBIT increased 2% to SEK 436 million. That corresponds to margin of 11.8%, which is up from 11.3% last year. And we see that the efficiency measures we have taken, especially within attachment, are starting to yield results, and they are actually -- the positive effects from these are compensating more than fully the increased cost we are getting from tariffs within this business area. The adjusted EBIT margin increased to 11.6% and then we also had some small positive amount where we were reversing some cost for previous restructuring measures.

So all in all, a good trend when it comes to T&A for margin. We continue to demonstrate strong cost control across the organization. Administration, marketing and R&D expenses were lower both year-on-year but also sequentially. And that, of course, is a strong focus internally to have operational efficiency. Net financial items came in at SEK 236 million negative versus SEK 264 million last year. Interest net improved to minus SEK 181 million, and that was minus SEK 250 million in the previous year. For taxes, we had a tax expense at SEK 613 million, which is an effective tax rate of 23.9%, which is still within the range we have indicated of 22% to 24%.

This slide is -- shows our operating cash flow. It increased by 38% to SEK 2.5 billion, that's up from SEK 1.8 billion last year. we had a positive impact by lower working capital tied up and also lower taxes paid in the quarter. And the cash conversion rate, which we measure on a rolling 12-month basis was at the end of the quarter, 105% compared to 88% at the same quarter last year. And coming to working capital, if we compare to the previous year, our net working capital decreased by 7%, now to SEK 22.6 billion. Excluding the effect of acquisitions and currency, net working capital increased slightly, mainly due to increased receivables. We have put and we are putting a lot of effort into being more efficient, especially when it comes to inventory. Despite having a strong organic growth in Equipment this year, we have actually improved here. And we see that the average net working capital in relation to revenues in the last 12 months have decreased from 38% to 37%, and that's obviously something that makes me as a CFO, glad to see.

So my last slide for today is on capital efficiency. Our net debt decreased to SEK 11.1 billion. It was down from SEK 15.2 billion last year, supported then by the strong cash generation that I showed previously. We do maintain a solid financial position. We have a net debt-to-EBITDA ratio of 0.73 and 1 year ago, that was 0.97. Our return on capital employed was 19.3%. It's down from 21.5% explained by higher intangible assets, including goodwill and also lower profit.

And with that, over to you again, Helena.

Thank you, Hakan. So to summarize the quarter, our focus on safety has made us into the safety leader in our niches, and we have several good examples in the quarter with the most meaningful being the successful rescue of workers after 60 hours in a collapsed mine. We're also glad to provide all Hindustan Zinc mines with collision avoidance systems. We have shown that we are the mixed fleet automation leader with a key milestone achieved in the Roy Hill project and the iconic Pit Viper drill rig has set the benchmark for sustainable and productive mining operations worldwide. The organic order growth of 7% reflects a high mining activity and that the destocking phase within Attachments largely is complete. And the actions taken in Tools & Attachments are yielding results and our strong operating cash flow gives us financial flexibility to invest both organically and inorganically moving forward. And we have a strong cash flow and Epiroc stands strong to capture growth with more than 60% of our mining orders deriving from gold and copper mines and with an increasing willingness by the industry to invest in both existing and new mines, exploration demand specifically has increased. And we have never had a stronger offering than we have today. So in the near term, we expect mining demand to remain high while demand from construction customers is expected to be stable at a low level. Thank you.

Thank you, Helena. Thank you, Hakan. Well done. So it's almost time to move into the Q&A session. But before we start, I would like to share a quick note. On June 8 to 9, next year, 2026, we will host our Capital Markets Day in Orebro in Sweden. And this year, we are actually planning for some things special, so get ready to create lasting memories. We will issue a press release once the registration opens, but I recommend you to mark the date in the calendar already now. And also, so you know, Volvo will host the Capital Markets Day on June 10 in Eskilstuna, and that's just 1 hour away from Orebro, and we will coordinate the logistics to make it easy and worthwhile for you to attend both events.

And now let's begin with the Q&A session. I know you're eager but please keep it to one question at a time. And operator, you may open the line. Thank you.

[Operator Instructions] The next question comes from Christian Hinderaker from Goldman Sachs.

I want to start on the margins, if I can. You've been taking some cost actions here but if I look back, I think we've now had maybe absent the last quarter of Q2, 11 quarters of year-on-year decline in profitability. I guess as we look ahead to the next 12 months, I'm curious as we should expect a positive or rather accelerating bridge effect from those cost savings? Or are we at full run rate in terms of the cost saving impact in the bridge today?

Well, I think that's -- we have taken a number of efficiency measures during many quarters now, including consolidation of sites. I think we -- of course, it's a portion of that we have in the result in the quarter. So I think you can expect that more of this will be shown in the coming quarters ahead.

And maybe just on the nickel market. I'm a little bit surprised the impact on the business there, if I'm not mistaken, I think that's around 1% of your commodity mix, maybe I've the wrong figures. Yes. Can you help us understand that? Is this effectively service-led, i.e., you've got service contracts on these sites and obviously unable to revenue? How do we think about the potential path I guess, back to full operations there, any other color would be helpful.

We have seen it during quite many quarters now that the nickel mines, they have a challenge. And we -- towards several of these mines, we had service contracts so the impact is mainly, I would say, on service. And of course, I think that means that we will have to ramp down operation and do a lot of or say, mitigating actions then to compensate for that. But that is mainly -- so it's -- and it has been ongoing for quite some time, but we see it -- and of course, I think this is quite normal when prices are low that customers put part of the mines in care and maintenance or they lower their output levels.

And exposure was more close to 3% [ than 1% ]. So that's why if we get a bigger hit on 3%, it's, of course, more meaningful than hit on 1%.

The next question comes from Klas Bergelind from Citi.

Helena and Hakan. So my first one is on the drop-through in E&S. So equipment sales is growing faster than service. So that is one negative drag. And then you're highlighting tariffs, then product mix, which is nickel, which you just touched on. And then it seems like SEK 300 million of sales linked to Roy Hill was margin dilutive as well. So quite a lot of negatives. And what I'm first trying to understand is on Roy Hill. I was under the impression that mixed fleet automation was a pretty good margin relative to [indiscernible] your connectivity business. Is this just temporary? Should the margin improve from here and from when? And then also on the sort of general mix within service, parts and kits, I mean, nickel, as you alluded to, is a small part. Why is parts and kits not growing more helping the mix given that you have almost a 40% margin in that business and given the strong activity at the miners?

If we look -- I'll start with the Royal Hill, yes, this -- of course, this will be a profitable business long term. When we do a development project like this with -- but when we nail the technology, of course, we have quite a lot of R&D expenses related to a project like this. So I think this is -- you should see this as a onetime thing that is dilutive because when we scale, and this was the same thing when we did -- when we roll out automation for our own equipment many, many years ago. But mixed fleet automation is a profitable business, both underground and it will be a profitable business on surface as well. When it comes to parts and service, we have a negative impact then on the activity levels in nickel. But I wouldn't say that there is -- when it comes to the growth of parts, that is very much our own ability to capture the customer share, I would say. So it's not related so much to the activity level. Of course, it can be a little bit related to where the fleet are from an age perspective, if it's larger component rebuilds, et cetera. But I think it's more our ability to capture or -- the customer share of our own machines. So I wouldn't say that it's so well correlated to the, let's say, activity level as such. But of course, this is where we are working hard with our strategies to continue the growth journey we have had for many, many years when it comes to growing parts as well.

Yes. The reason why I ask, Helena, is that parts and kits, according to your Capital Markets Day slides, if you back out currency, mid-teen '21 to '23. And part of that was probably over ordering, good pricing and then it went negative in '24. But since then, it hasn't really recovered. And I appreciate nickel is used as an example, but it's such a small part of the business. So yes, that's why I'm asking why parts and kits are not accelerating given that your peers are basically growing that low double digit at the moment?

I think it's more related to our own fleet, but also, of course, that we have not been as successful in the previous quarters when it comes to growing our customer share. So that is as it has been for many, many years, a strong focus area, of course, for us to continue to grow the parts business.

Okay. A quick follow-up on the tariff impact, about 50 bps net impact in the quarter. Section 232 on steel and aluminum started from August 18, you probably had some inventory covering you through August and September. It would be helpful to know if you think the 50 bps net impact to the margin will increase from here into the fourth quarter.

We expect that the net impact will come down in Q4, but we have been impacted because we're taking -- a lot of the mitigating actions we have taken, it takes some months to get it right, of course, and also when it comes to price increases, but also redirecting of flows, changing suppliers, et cetera. So we expect the impact to be lower in Q4.

Absolute final one for you, Hakan. You said that in T&A, the positive effect from the savings are fully compensated from the impact of the tariffs in T&A. So is then the group comment of 50 basis points very geared to E&S on the margin? Or how should I read that comment?

No, you shouldn't read it like that. We have tariff impact definitely for Tools & Attachment as well quite a lot. But given that we are do -- we started with the efficiency measures earlier in attach -- especially on the Attachment side, given that, that dropped, what is it now 2 years ago. So it's more that we have -- we see more impact from the efficiency measures in T&A and therefore, they are able to offset the tariffs, but it's not -- does not mean that we have lower impact of tariffs in T&A.

The next question comes from John Kim from Deutsche Bank.

I'm wondering if we could talk a little bit about the cadence and delivery in the E&S business over the next year or so. I know there's a lot of good efforts on automation and digitization. I'm wondering when we're going to see positive mix effects there. And if you could also extend that comment to aftermarket when you see that mix normalizing.

But I think we see that -- when I look at the orders received, and I think I've said that in many of the call here in the quarters that more and more of the orders includes higher degree of sophisticated machines. So it's with different type of automation or different type of fossil-free machines. And of course, that -- over time, when that translates into revenue, that will have a positive impact for us. So the more advanced machines we're putting on the market that both helps equipment margin, of course, but it's also helped us to capture larger share in the aftermarket because these are much more, I will say, advanced machines also to serve. And we have a good correlation in how much we capture when it comes to the aftermarket of the more advanced machines. So for us, it's very good. The more advanced machines, we're pushing out in the market that is good for us long term.

And if we could just -- if I could do a quick follow-up, in terms of tariff impacts and 232, how should we think about Q3 versus Q4? Is it fair to say that some of the Q3 sales were booked out of things out of inventory, perhaps at lower cost?

Not so much, I would say. So I think we expect the impact from tariffs to go down in because we have been quick in adjusting prices, redirecting flows as well as changing suppliers. So we expect it to trend down now in Q4. Some of the tariffs also between U.S. and Canada that impacted in Q3 will not be there now moving forward. So this is, of course, a very evolving landscape. But as it looks like right now, if the tariff stays as is, we expect it to go down.

The next question comes from Michael Harleaux from Morgan Stanley.

I was wondering if I could ask you 1 on R&D. It looks like this has come down significantly. And I was wondering if this is maybe an active decision to protect margins? And then another one would be on tariffs. If you could explain to us if the hit is on components or on finished products. That would be great.

I can start with the R&D question. Then if you compare Q3 this year with Q3 last year, in Q3 last year, we did impairment of intangible related to some acquisitions and those were booked on the R&D line. So that's why you -- and that was more than SEK 300 million, if I remember correctly, I think it was close to SEK 350 million. So when you compare Q3 last year with Q3 this year, that's the main reason for the explanation. And no, we have not slowed down R&D in order to secure margin. We're investing as much as ever within R&D.

And if we look on the tariffs, they are impacting both finished products. If we take machines, so to say, equipment, they're impacting components. So spare parts, they are impacting the consumables as well as attachments. So it's across all different products, but with different -- in different ways, where, of course, where we have high steel content, then that is -- has an impact like consumers, for example, or attachments.

And if I may ask a follow-up. When you put your prices up, does that put you at a competitive key disadvantage versus you customer -- versus your competitors or not?

No, I wouldn't say so because we have a very, let's say, similar manufacturing footprint, all of us if I look on all the global OEMs. And there is not that many players that are positioned in U.S. in a different way. We've a strong footprint in U.S. already with both consumables and of course, with attachment manufacturing as well as equipment manufacturing. So I wouldn't say that we have a disadvantage in any way.

The next question comes from Rory Smith from Oxcap.

I just wanted to come back to this services growth. I guess I was a little surprised to see early sort of 2% organic growth there in E&S, particularly given where commodity prices are. But I guess your answer to Klas' question was sort of don't read too much into activity levels or commodity prices at least. And it's more around customer share or winning share of customers wallet. And in that case, could you just sort of update us on the actions that you've taken to sort of either recover or improve that in recent quarters and what that -- how that positions you for 2026. And if we could -- how we should think about service growth going into 2026, that would be helpful.

Yes. But when we look at developing the service and parts of the service business in general, it's a lot about having the supply chain in place with high availability of the parts, making sure that we have the best technicians out there, but also that we are more tailoring the -- our offering because different customer types need different type of value proposition. And this could be anything from developing the -- our products and our offering, but also to develop other channels to get a better reach. So for some of the segments, it's not -- if we take, for example, the construction segment where we have a big share also of equipment, there is a different value proposition needed to capture that growth. But of course, it's a lot about making sure that we are efficient in our service operation and that we have many years with very successful growth in our service business. And that's due to the different strategies that we have implemented over the years. And of course, we are continuing to implement these strategies and continue to. And I think the regional focus for us when it comes to our setup in parts and service also gives us even more a better understanding of to who we are losing that other part too because this is not -- this is local players that are doing things in a different way. And of course, we need them to make sure that we can beat them and to have an offering that is competitive to these local mom-and- pop shops.

And if I could just squeeze in a follow-up. The outlook for -- well, I guess a question on the outlook. You said construction customers is expected to be stable at a low level, but the orders there in T&A, obviously, up high single digits, and you're calling the end of destocking. I don't think you did answer it in a previous question, but just any color there on the outlook, why that kind of -- is a little bit more cautious than what the quarter might imply.

We are more cautious because we don't see that activity level out there. If we look on the activity level in the market, we don't see that, that is picking up yet but however, for us, it means a higher order intake because this destocking phase has come to an end. And that is good because what has also impacted our results over the last 2 years is under absorption in our factories due to that inventory reduction on top of then a lower activity level. So it's positive for us because that gives us -- it helps us with absorption in the factories, and we see that already. We have better load our factories now in the Attachment division.

So the underlying demand in the market, that's what we expect to remain low at a stable level. But I hope what we have seen now in Q3, and we expect Q4 is that the apparent demand, what the dealers and distributors are buying, that is now at a higher level than it was before. But overall, we don't see any change in that. The activity is actually taking off.

The next question comes from Edward Hussey from UBS.

Just the first one, do you mind just maybe quantifying the difference in tariff impact between the 2 divisions?

We rather stick to say that it's roughly 0.5 percentage point on group level.

Okay. And then just on -- going back to this service, sort of -- I mean, it seems like it's sort of underperforming, as you've been saying in terms of customer share. Is this partly to do with trying to move to getting service agreements in place? And secondly, is this something that we should continue to think about going forward? Or how should we think about development from there?

No. I don't think it's related to -- when we enter into service agreement, we normally capture twice as much. as we do if we're only selling parts individuals. So for us, it's good when we bring in a service contract because that generates that stability over and that's revenue -- recurring revenue maybe for 3 to 5 years. So I wouldn't say that has in a way impacted. I would say it's more our ability to capture share on existing fleet, but also that we -- as I mentioned earlier, we have had an impact from the nickel segment with a couple of service contracts under current maintenance. And of course, then that revenue stream is -- it's lost. For the time being, of course, when the nickel price moves up again, that -- then that revenue stream will come onboard again.

I mean just on that customer share there, can I ask where is it going? Is it sort of local players, pirates? Or is it to [indiscernible] to the biggest competitor? I mean what should we think about...

No, it's not to any other OEMs. So it's always, I would say, I would say, local players doing service jobs and pirates. That's always --- it's a very seldom competitors or I have never seen it, to be honest.

Okay. And is it simply just -- is it just simply a sort of pricing question? Or is it -- and going forward, is there going to be a risk to pricing for you?

No, I wouldn't say it's -- I wouldn't say that it's pricing. It's -- I think also, a lot of mines want to shop. They want to have to spread their risks. So it's -- I would say, rather it's we need to -- I think we have some -- if you look -- if you zoom out to look at this over the last 5, 6 years, we have been successful in growing our service business. Now we have had lower growth numbers for the last couple -- for the last, I would say, years. And that is what we need to get back to higher single-digit numbers. But it's all in our hands, I would say. It's not related to -- but of course, price is one part of this, but also there, it's important really to drive innovation because with higher -- a better value proposition, that also gives the opportunity for us to continue to grow the parts and service business. So for me, it's very much linked to how advanced machines we're putting on the market. And that's promising to see because we are putting more and more advanced machines on the market every quarter.

Okay. And sorry for hogging the mic, but just very quickly, a final one. Just in Equipment & Service. The headwinds due to internal service mix, do you mind just giving some rough quantification whether -- what the kind of level was this quarter?

I think what we said was we have lower share of service than we typically have and services is where we have the best profitability. So if we have more equipment as usually, it comes with a lower margin than if we have more service. So I think that's what we were trying to explain in the presentation.

But I mean, I guess, for a few quarters, you had an internal service mix headwind as well. Is that still an issue? Or is that no longer an issue?

I wouldn't say it's something that stands out in this quarter at least.

The next question comes from Vlad Sergievskii from Barclays.

Two questions from me. Number one, are you seeing any increase in competition in your surface rotary drill rig segment where Epiroc, of course, has historically been the absolute dominant force?

No, we are not. I would say this is -- we have a very strong position in the surface segment, and I don't see any changes there.

Understood. And then a question on demand in mining equipment. Obviously, you continue to highlight demand as being at high level. But your new you equipments orders, if I exclude large orders, were up more than 20% year-over-year. Is it just a function of a base was lower, and that helped or indeed, the high level of demand is perhaps getting a bit higher?

We had strong organic growth also in Q3 last year. So we were up 11% in equipment orders in Q3 last year. And now on top of that, we are up 10%.

That's exactly the question. The question is you obviously continue to keep high level of demand commentary. But my question is, is high level of demand improved compared to what it was before? Has this level got higher? Or it's still same high as it was a year ago?

Okay. But when I look at the pipeline, I look what we have ahead of us when it comes to expansion of existing mines, when it comes to the replacement. Of course, we are -- the fleet continues to grow older. When I look at the expansion initiatives, when it comes to brownfield expansion, we also in this quarter won equipment orders for greenfield expansions. That is, of course, I see a positive outlook when it comes to the -- when it comes to equipment for moving forward. I think this is -- we say high, and we have said that for many quarters. But when I look at it, it's -- and of course, I think it's also due to the geopolitical situation in the world that there is a lot of initiatives now going on to really push permitting, et cetera, in different countries to make sure that we safeguard value chain of minerals. So -- and that's good to see. And we also see that when we look at the exploration activity, exploration stood out with very strong demand in the quarter. And that activity is very much related then to copper and to gold, which, of course, is promising. That needs to happen for brownfield and greenfield expansions also to happen.

And I would add to that. It's a bit difficult to say exactly how it was 1 year ago. But if we go back maybe 2 or 3 years, we can definitely see that the projects are becoming larger, what we have gotten as a contract for example is Fortescue order that we talked about before, but also what we see going forward, there are larger projects out there than what we saw at least 3 years ago.

The next question comes from [indiscernible] from Bank of America.

One, on the exploration orders that you mentioned, you said quite some strength in exploration. Could we see this as an early indicator that we now, let's say, finally see like a really like strong recovery and also then connected with this the timing of large orders. Is this coming closer? So basically, trying to gather here if this is just a direct lead indicator to first see the exploration and then basically start seeing stronger orders for the equipment as well.

When we -- for us, having a strong offering in exploration is super important from exactly what you're saying because it is an early indicator. And we see that drill meters are trending up. We see that the activity level of the fleet out there, existing fleet is [ trending ] up. We also have a strong, I'd say a strong product offering when it comes to equipment for exploration. And we are very close to the exploration contractors in the world. So for us, it is a positive when we see this -- not these numbers that the orders are coming in on exploration because that is what -- if we look back into quite many years now, the exploration -- let's say, the number of drill meters in exploration has not been sufficient if we look at it from an industry standpoint, which has led to that too few mines, it has not led to expansion projects or greenfields coming on board. So it's extremely important that exploration continues and increases because that's what we safeguard the output of, for example, copper in the coming 10 years is, of course, always long lead times when it comes to establishing a new mine. So for us, it's -- so we see it as an early indicator. So I'll share that view with you.

And as a follow-up here, maybe from your experience, can you maybe just share in past cycles? How long has it round about taken between like the jump up in exploration orders to then like see it even like further downstream?

I wouldn't -- I think that is always if it depends on where it happens in the world. And it's also a big difference if it's brownfield exploration or if it is greenfield exploration. If it's greenfield exploration, that takes longer time before greenfield comes on board, that could be that could be 7 years. If it's brownfield exploration, that goes much faster, that can be maybe a year or so or 2 years.

The next question comes from Gustaf Schwerin from Handelsbanken.

I have a few follow-ups. Firstly, on Equipment & Service. If we take the SEK 300 million invoicing of Roy Hill, is it fair to assume that, that was done at around 0% margin or maybe even losses, which would then take say underlying Equipment & Service margins to at least 22.5%? That's the first one.

No, it was not done with a loss. It was positive margin.

But was it low single-digit margin?

Now we won't go into exactly. It was like we said, is still development project. But now we got to invoice quite a bit, which meant that it was at least with some margin, but we won't go into exactly how much it was it was. It was below group average.

Okay. Second, on the service orders, again, growing below trend for a few quarters. You mentioned nickel, but it doesn't sound like the production issue out there, the copper mining are having a meaningful effect on growth there. If I remember this correctly, we did discuss Kamoa copper weighing on service growth quite recently. Or we get that wrong?

No, that's correct as well. So we have mentioned DRC for -- during a couple of quarters. Beginning of the year, it was the unrest in the northern part of DRC that impacted. We also have an impact this quarter in Kamoa. So their production has been hampered by the seismic activities that they have been under. So that revenue stream is not yet up to where it used to be. So we still have an impact from Kamoa.

Do you mind showing some kind of impact on service growth in Q3?

The impact from Kamoa, you mean.

Yes.

No, we will not share that. But it's a big fleet. It's a big contract we have there. It's -- we have been -- if you go back to some of the largest orders, we have won when we announced a couple of years ago, the largest underground order that went to Kamoa. Of course, this is a meaningful business. But that is -- it's -- we expect that to come back here in Q4.

Yes, they operations end of Q3. So that should be back in our books again in Q4.

Quickly, lastly, on service growth here. You've made this large push on service contracts in recent years, increasing penetration quite a lot. How far away are we from that actually translating into higher capture rate now for parts and kits as well?

I think for the contracts we capturing -- we're capturing more, that we see. But it's always also depending on the age of the fleet, how much you capture because the high-value components they -- you replace them when -- when you are in the -- a couple of years in to -- so it's always depending on -- it's not linear the, let's say, the amount of larger components, and that's where the big value sits. So it also has to do with the age of the fleet and in the different type of contracts where they have then put - service contracts in where we have a larger fleet, for example.

Well, thank you, everyone, for good questions. I do know we have a few still on the line. Alexander and I, we will make sure that we reach out to you after this call. But thank you, everyone, for taking the time. Thank you, Helena, Hakan, good presenting today. And yes, successful investments. Thank you.

Thank you everyone.

Thank you very much, everyone.