Epiroc AB (publ) ($EPIA)

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.