Epiroc (EPI) CMD 2024 summary

Strategic direction and growth priorities

• Focus on attractive niches with structural growth, leveraging innovation in automation, digitalization, and electrification to drive productivity and sustainability in mining and infrastructure sectors.

• Strategy centers on recurring, resilient, and profitable growth, supported by a decentralized business model, strong corporate culture, and operational excellence.

• After recent acquisitions, infrastructure exposure will rise to 25% of orders, with mining remaining the core segment.

• Collaboration and acquisitions strengthen innovation, safety, and digitalization capabilities, positioning for growth in urbanization, deconstruction, and recycling.

• High proportion of recurring business and well-proven business model drive value creation for stakeholders.

Innovation, technology, and sustainability

• Major investments in R&D (3.2% of revenue) focus on automation, electrification, and digital solutions, with 9% of workforce in R&D and a fivefold increase in patent inventions since 2018.

• Mixed fleet automation is scaling rapidly, with 3,100 driverless machines (+29% YoY), and electrification fleet at 600+ units across 34 sites.

• Sustainability goals include halving CO₂e emissions in operations and transport by 2030, 96% completion of CO₂e reduction in operations, and a full fossil-free product assortment by 2030.

• Circularity initiatives include Batteries as a Service, second-life battery applications, and circular business models supporting new revenue streams.

• Safety leadership is reinforced by advanced collision avoidance systems and situational awareness solutions, now deployed at scale.

Business segments and market outlook

• Mining (81% of orders) benefits from high exposure to copper and gold, both facing future supply deficits, supporting long-term demand.

• Construction/infrastructure segment (19% of orders, rising to 25%) is expected to grow 4-5% CAGR, with strong positions in North America and Europe post-acquisitions.

• Service and aftermarket represent 66% of revenues, with a focus on expanding resilient, recurring revenue streams and profitable growth.

• Digital Solutions division is scaling, with SEK 2.4 billion in revenue and 1,300 employees, focusing on agnostic, mixed-fleet automation and software-driven recurring revenues.

• Circular services (mid-life upgrades, remanufacturing) are growing at 12% CAGR, supporting fleet longevity and customer loyalty.