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Annual and Sustainability Report 2025

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Övning 1 - Text, bild och grid

Del 1 – Textredigering

Rätta stavfelen och språket i texten nedan. Gör följande ändringar:

  • Rätta stavfelen: growht → growth, nisches → niches, aquisitions → acquisitions.
  • Ändra is → are (grammatisk justering).
  • Byt finalised → finalized (amerikansk stavning).
  • Markera accelerate growth i fetstil.
  • Kursivera leadership positions.
  • Lägg till en ny mening längst ned:
    “These acquisitions strengthen our position in automation and digital solutions.”

 

Acquisitions to gain speed

Acquisitions is a way for us to accelerate growth and build leadership positions in attractive nisches. In 2024, we finalised five aquisitions with combined revenues of more than SEK 5.4 billion.

 

Del 2 – Grundläggande bildhantering

  • Byt ut bilden på Helena och lägg sedan till en bildtext (caption). 

On July 3, 2024, we acquired the remaining shares of ASI Mining, a mining automation specialist and our collaboration partner in the Roy Hill project in Australia. In this project, we are converting a mixed fleet of almost 80 haul trucks to driverless operations. When this project is complete, we will have the created the world’s largest autonomous mixed fleet mine. We first invested in ASI Mining in 2018.

 

Testar denna ruta
Helena Hedblom, CEO

 

Del 3 – Arbeta med block/grids: redigera och bygga ut ett block

Redigera citatet:

  1. Byt ut “nice” mot “rewarding” 
  2. Redigera blocket: testa att placera citatet under bilden istället. Kopiera först citatet i höger kolumn, radera sedan och lägg till en ny cell under bilden i vänster kolumn. Klistra in citatet här istället, spara och ersätt.

  

Strategy for value creation and sustainable profitable growth

2024 was a successful year for Epiroc. This Annual and Sustainability Report describes our strategy for profitable growth. We aim to create value for our customers through our innovative equipment and aftermarket solutions, attract motivated employees by focusing on responsible business practices and sustainable development. and provide strong financial returns to shareholders by increased efficiency.

Thank you to all colleagues for your dedication to innovation and improvement, helping Epiroc stay ahead and create value for everyone.

Helena Hedblom, President and CEO

January 2025 

Helena Framför Hq

As a leader, it is nice to see that one’s leadership works in difficult situations. It is clear that it is more inspiring to work with technology shifts, acquisitions, and running businesses than dealing with crises, such as pandemics and exiting major markets. But I believe that if you want to be a leader, you must be able to do both.

Helena on leadership

 

 

Övning 2 - Redigera en not

  •  Vi antar att en siffra i not 6 behöver ändras: "Audit fees and other services" ska vara 40 för 2023 och 55 för 2024.
  •  För denna övning demonstrerar vi hur Excelarket "Epiroc Group Notes" uppdateras i mediearkivet. Detta kan bara göras av en person åt gången.

 

Note 6 Remuneration to auditors

  2025 2024
Ernst & Young    
Audit fees 54 55
Audit activities other than the audit assignment 5 1
Tax services 3 3
Other services 2 4
     
Other audit firms    
Audit fees 8 6
Total 72 69

Audit fees refers to audit of the financial statements and the accounting records. For the Parent Company this also includes audit of the administration of the business by the Board of Directors, and the President and CEO as well as the Sustainability audit at Group level. Tax services include both tax consulting services and tax compliance services. Other services include comfort letters and other quality assurance services. At the Annual General Meeting 2024, Ernst & Young was elected as auditor for the Epiroc Group until the Annual General Meeting 2025.

 

Övning 3 – Hållbarhet (Material impacts, risks and opportunities)

  •  Du har redigerat avsnittet "Klimatförändringarnas påverkningar, risker och möjligheter" på sid 93 i årsredovisningen för 2024.
  • Du har precis gjort klart den första tabellen med beskrivande text på den sidan, och vill nu lägga till nästa tabell under den första.
  • Klicka på blocket för att öppna redigeringsläget.
  • Kopiera hela den grid som innehåller tabellen till vänster och text till höger
  • Klistra in under genom att klicka på den lilla "resväskan" till höger om "Add content". 
  • Redigera tabell och text
    • Ändra rubriken på tabellen till: Emissions-free* and energy-efficient products can enable decarbonization and healthier workplaces
    • Ändra texten till höger om tabellen till: Our customers’ goals for CO2e emission reduction and healthier workplaces are expected to drive demand for our emissions-free* as well as our energy-efficient products and connected solutions, especially in regions with stringent regulations. Epiroc continues to invest significantly in R&D, acquisitions, and partnerships to support customers’ CO2e emission reduction efforts. This will differentiate us in the market, strengthen customer relationships through alignment with their decarbonization goals, diversify revenue streams and
      increase revenue growth. Emissions-free* products reduce the negative impact on customers’ employees’ health by protecting them from fumes, noise, and heat, especially in underground operations (read more in ESRS S2). They also reduce the energy need for ventilation, a major cost for underground mines.
        

Material impacts, risks and opportunities

Description

CO2e emissions from the use phase of Epiroc’s sold products (Scope 3)
Actual negative impact
    Downstream
Short-term Medium-term Long-term

The majority of our CO2e emissions occur in the use phase of our sold products. This includes total expected lifetime emissions of sold products at our customers’ operation sites from all relevant products sold in the reporting year. We are contributing to these CO2e emissions by selling the products to the customers, but we are also enabling reduction of these emissions through our product offering and by engaging with customers.

 

 

 

Det bör se ut så här när det är klart:

Material impacts, risks and opportunities

Description

CO2e emissions from the use phase of Epiroc’s sold products (Scope 3)
Actual negative impact
    Downstream
Short-term Medium-term Long-term

The majority of our CO2e emissions occur in the use phase of our sold products. This includes total expected lifetime emissions of sold products at our customers’ operation sites from all relevant products sold in the reporting year. We are contributing to these CO2e emissions by selling the products to the customers, but we are also enabling reduction of these emissions through our product offering and by engaging with customers.

Emissions-free* and energy-efficient products can enable decarbonization andhealthier workplaces
Actual positive impact
    Downstream
Short-term Medium-term Long-term

Our customers’ goals for CO2e emission reduction and healthier workplaces are expected to drive demand for our emissions-free* as well as our energy-efficient products and connected solutions, especially in regions with stringent regulations. Epiroc continues to invest significantly in R&D, acquisitions, and partnerships to support customers’ CO2e emission reduction efforts. This will differentiate us in the market, strengthen customer relationships through alignment with their decarbonization goals, diversify revenue streams and
increase revenue growth. Emissions-free* products reduce the negative impact on customers’ employees’ health by protecting them from fumes, noise, and heat, especially in underground operations (read more in ESRS S2). They also reduce the energy need for ventilation, a major cost for underground mines.

 

 
(GWh) 2025 3) 2024 3)
Fuel consumption from coal and coal products - -
Fuel consumption from crude oil and petroleum products 86 98
Fuel consumption from natural gas 56 49
Fuel consumption from other fossil sources 4 -
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources 53 44
A. Total fossil energy consumption 199 191
Share of fossil sources in total energy consumption (%) 62 61
B. Consumption from nuclear sources 4 1
Share of consumption from nuclear sources in total energy consumption (%) 1 0
Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) 8 3
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 100 112
The consumption of self-generated non-fuel renewable energy 8 6
C. Total renewable energy consumption 116 121
Share of renewable sources in total energy consumption (%) 36 39
Share of renewable sources incl. renewable of mix in total energy consumption (on-site) (%) 1)2) 55 58
Total energy consumption (A+B+C) 319 313
     
 1) Renewable of mix does not have any certificate or similar statement from the energy provider that assures only renewable energy sources are used for the electricity or district heating provided according to the contract.
 2) Our 2030 target of reaching 90% renewable energy in own operations includes on-site energy consumption only.
 3) Estimations have been added to achieve full reporting scope. See more information on estimations in "GHG accounting methodology" below.
     
Energy intensity
  2025 2024
Total energy consumption per net revenue (MWh/MSEK) 1) 5.14 4.92
     
 1) Net revenue is total revenues presented in the Consolidated income statement.
 

 

 

 

January
  • Q4 2024 and FY 2024
  • Targets 2025
  • Evaluation of Board of Directors
  • Evaluation of President and CEO
  • Audit process review
  • Litigation and compliance status
  • Investments
  • AGM preparations
March
  • Annual report 2024
  • Remuneration report

 

April
  • Q1 2025

 

May
  • Tools division
  • Supply chain
  • Underground division
  • Enterprise Risk Management
  • Sustainability report
  • New organization
May
  • Statutory meeting

 

July
  • Q2 2025
  • CSRD

 

September
  • Strategy trip to Örebro
  • Succession planning

 

October
  • Q3 2025
  • Acquisitions

 

December
  • Outlook
  • Strategic initiatives

 

 

Attractive niches Outperformance Innovation Aftermarket Operational Sustainability and a strong corporate culture Our success is based on sustainability and a strong corporate culture We have a high proportion of recurring business We accelerate the productivity and sustainability transformation in our industry We focus on attractive niches with structural growth We create value for our stakeholders We have a well-proven business model

 

 

Profit bridge Operating profit  
  MSEK, Δ Margin, Δ, pp
2024 12 385 19.5
Organic 181 -0.4
Currency -685 0.4
Structure/other* 44 -0.3
Total -460 -0.3
2025 11 925 19.2

 

Profit bridge Operating profit  
  MSEK, Δ Margin, Δ, pp
2024 12 385 19.5
Organic 181 -0.4
Currency -685 0.4
Structure/other* 44 -0.3
Total -460 -0.3
2025 11 925 19.2
Breaker Cutter And Magnet

 

 

 

 

Key figure Description Reason for use
Adjusted operating margin Adjusted operating profit in % of revenues. A measurement of the operational profit which enables comparisons over time by excluding items that are irregular in frequency or size.
Adjusted operating profit Operating profit adjusted for items affecting comparability.  Enables comparisons over time - and between companies - by excluding items that are irregular in frequency or size.
Book-to-bill Orders received divided by revenues. An indicator of demand trends.
Cash conversion, % Operating cash flow divided by net profit, rolling 12 months. The cash conversion rate measures how efficiently a company converts its net income into operating cash flow.
Capital employed (average) Average total assets 1) less average non-interest-bearing liabilities/provisions. Capital employed for the segments excludes cash, tax liabilities and tax receivables. Shows how much of total capital is tied to operations.
Capital employed turnover ratio Revenues 2) divided by the average capital employed 1) Shows how efficiently Epiroc generates revenues from the capital utilized to run operations.
Capital turnover ratio Revenues 2) divided by average total assets 1) Shows how effectively total assets are used.
EBITDA Earnings before interest, taxes, depreciation and amortization. Alternatively; the operating profit plus depreciation, impairment and amortization. An indicator of cash generating ability.
EBITDA margin EBITDA as % of revenues. An indicator of cash generating ability.
Equity ratio Equity including non-controlling interests, as % of total assets.  A measure of financial risk showing how much of Epiroc's total assets that have been financed with equity.
Gross margin Gross profit as a % of revenues. Measures how much of Epiroc’s revenues are left after paying the costs of goods sold.
Items affecting comparability tems such as operating profit/loss from acquisitions and divestments, one-time items (restructuring) and change in provision for share-based long-term incentive programs. Shows how non-recurring items have affected the result.
Large orders Orders above MSEK 100 Shows orders impacting comparability.
Net debt Interest-bearing liabilities and post-employment benefits, adjusted for the fair value of interest rate swaps, less cash and cash equivalents and certain other financial receivables. A measurement of the financial position.
Net debt/EBITDA ratio  Net debt in relation to EBITDA. 2)  A measurement of financial risk.
Net debt/equity ratio Net debt in relation to equity, including non-controlling interests.  A measurement of financial risk.
 Net working capital  Working capital net of inventories, trade receivables, trade payables, other operating assets and liabilities.  Measures Epiroc's liquidity and capital efficiency.
 Operating cash flow  Cash flow from operations and cash flow from investing activities, excluding company  acquisitions/divestments, as well as other adjustments. Indicates Epiroc’s ability to generate sufficient positive cash flow to maintain and grow operations. 
 Operating cash flow per share   Operating cash flow divided by basic number of shares outstanding.  Improves the ability to make comparisons over time.
 Operating margin  Operating profit as % of revenues.   Helps monitor Epiroc's fulfillment of the financial goal of having market leading profitability.
 Orders on hand  Orders on hand are orders that have been placed but not yet completed and recognized as revenues. As from 2024, Epiroc does not include orders on hand (order book) in orders received when acquiring companies. The reported orders received in 2023 of MSEK 59 332 included orders on hand from acquired companies of MSEK 433 for the
group, of which MSEK 30 for Equipment & Service and MSEK 402 for Tools & Attachments. Figures in the Admin report have been restated. 
 Orders received and order growth  Orders received in MSEK in a period. The total order growth includes the contribution from organic growth, currency and structure. A good indicator of demand for Epiroc’s equipment and aftermarket. 
Organic growth Organic growth is total growth excluding the contribution from currency and structure. Alternatively, the growth that is based on
volume and price.
Explains how volume, price and product/service mix changes drive the growth.
Pay-out ratio Dividend per share as % of basic earnings per share.  Facilitates monitoring of Epiroc’s financial target of a payout ratio of 50%.
Profit margin Profit before tax as % of revenues An indicator of profitability.
Return on capital employed Operating profit 2) as % of average capital employed 1) Measures how efficiently Epiroc generates profits from the capital utilized to run operations.
Return on equity Profit for the period 2) divided by average equity, excluding non-controlling interest 1) Shows Epiroc's ability to generate a return on the investments made by shareholders.

 

 1) Calculated as an average of five quarters. In 2016 and 2015, however, it was calculated as an average of two periods.
2) 12 months’ value.

 

 

 

Key figure Description Reason for use
Adjusted operating margin Adjusted operating profit in % of revenues. A measurement of the operational profit which enables comparisons over time by excluding items that are irregular in frequency or size.
Adjusted operating profit Operating profit adjusted for items affecting comparability.  Enables comparisons over time - and between companies - by excluding items that are irregular in frequency or size.
Book-to-bill Orders received divided by revenues. An indicator of demand trends.
Cash conversion, % Operating cash flow divided by net profit, rolling 12 months. The cash conversion rate measures how efficiently a company converts its net income into operating cash flow.
Capital employed (average) Average total assets 1) less average non-interest-bearing liabilities/provisions. Capital employed for the segments excludes cash, tax liabilities and tax receivables. Shows how much of total capital is tied to operations.
Capital employed turnover ratio Revenues 2) divided by the average capital employed 1) Shows how efficiently Epiroc generates revenues from the capital utilized to run operations.
Capital turnover ratio Revenues 2) divided by average total assets 1) Shows how effectively total assets are used.
EBITDA Earnings before interest, taxes, depreciation and amortization. Alternatively; the operating profit plus depreciation, impairment and amortization. An indicator of cash generating ability.
EBITDA margin EBITDA as % of revenues. An indicator of cash generating ability.
Equity ratio Equity including non-controlling interests, as % of total assets.  A measure of financial risk showing how much of Epiroc's total assets that have been financed with equity.
Gross margin Gross profit as a % of revenues. Measures how much of Epiroc’s revenues are left after paying the costs of goods sold.
Items affecting comparability tems such as operating profit/loss from acquisitions and divestments, one-time items (restructuring) and change in provision for share-based long-term incentive programs. Shows how non-recurring items have affected the result.
Large orders Orders above MSEK 100 Shows orders impacting comparability.
Net debt Interest-bearing liabilities and post-employment benefits, adjusted for the fair value of interest rate swaps, less cash and cash equivalents and certain other financial receivables. A measurement of the financial position.
Net debt/EBITDA ratio  Net debt in relation to EBITDA. 2)  A measurement of financial risk.
Net debt/equity ratio Net debt in relation to equity, including non-controlling interests.  A measurement of financial risk.
 Net working capital  Working capital net of inventories, trade receivables, trade payables, other operating assets and liabilities.  Measures Epiroc's liquidity and capital efficiency.
 Operating cash flow  Cash flow from operations and cash flow from investing activities, excluding company  acquisitions/divestments, as well as other adjustments. Indicates Epiroc’s ability to generate sufficient positive cash flow to maintain and grow operations. 
 Operating cash flow per share   Operating cash flow divided by basic number of shares outstanding.  Improves the ability to make comparisons over time.
 Operating margin  Operating profit as % of revenues.   Helps monitor Epiroc's fulfillment of the financial goal of having market leading profitability.
 Orders on hand  Orders on hand are orders that have been placed but not yet completed and recognized as revenues. As from 2024, Epiroc does not include orders on hand (order book) in orders received when acquiring companies. The reported orders received in 2023 of MSEK 59 332 included orders on hand from acquired companies of MSEK 433 for the
group, of which MSEK 30 for Equipment & Service and MSEK 402 for Tools & Attachments. Figures in the Admin report have been restated. 
 Orders received and order growth  Orders received in MSEK in a period. The total order growth includes the contribution from organic growth, currency and structure. A good indicator of demand for Epiroc’s equipment and aftermarket. 
Organic growth Organic growth is total growth excluding the contribution from currency and structure. Alternatively, the growth that is based on
volume and price.
Explains how volume, price and product/service mix changes drive the growth.
Pay-out ratio Dividend per share as % of basic earnings per share.  Facilitates monitoring of Epiroc’s financial target of a payout ratio of 50%.
Profit margin Profit before tax as % of revenues An indicator of profitability.
Return on capital employed Operating profit 2) as % of average capital employed 1) Measures how efficiently Epiroc generates profits from the capital utilized to run operations.
Return on equity Profit for the period 2) divided by average equity, excluding non-controlling interest 1) Shows Epiroc's ability to generate a return on the investments made by shareholders.

 1) Calculated as an average of five quarters. In 2016 and 2015, however, it was calculated as an average of two periods.
2) 12 months’ value.

 

 

ESRS Disclosure requirement Data point Section of the report Information
 2  GOV-1 21  Governance for long-term growth Information about the composition and diversity of the members of the administrative, management and supervisory bodies
2 GOV-3 27-29 Remuneration of the President and CEO,
Group Management and key personnel
Information on sustainability-related performance in incentive schemes
2  IRO-2 56  Appendix  List of disclosure requirements complied with in preparing the sustainability statement and table of all datapoints that derive from other EU legislation
2 SBM-1 38-40 Our Offering and reporting structure, Innovation highlights, Equipment & Service, Tools & Attachments, Employees Information about general strategy and the key elements of the business model

 

 

e not disclosed. All listed action types are currently active, except for the operations activities—switching to hybrid and electric company vehicles and switching processes to electric alternatives—which are still in the planning stage.

2030 climate goal

Decarbonization lever

Key actions

Operations

(Scope 1 & 2)

 

Energy and operational efficiency

  • Energy efficiency in buildings, processes and transport efficiency
  • Optimizing and restructuring of sites

Switch to fossil-free energy

  • Installing own solar panels
  • Purchasing of renewable and fossil-free energy

Electrification

·       Switching to hybrid and electric company vehicles

·      Switching processes to electric alternatives

Transport
 (Scope 3, category 4 and 9)

 

Planning and optimization

·       Regionalization of distribution centers and consolidated goods

Fuel and transport mode shift

 

·       Using more sea freight and less air freight 

·       Switching to renewable fuels

Electrification

·      Shift to hybrid and electric operations

Relevant suppliers
(Scope 3, category 1)

Suppliers’ operations

·       Engaging with suppliers for CO2e reduction

Less carbon intensive steel

·       Partnering with less carbon intensive steel mills

Recycled materials

·       Use of recycled material

Product design

·       Designing products with lower embodied emissions

Use phase
(Scope 3, category 11)

Electrification

·       Switching to electric products

Energy efficiency

·       Improving product energy efficiency

Fuel decarbonization

 

·       Switching to renewable fuels 

·       Fuel decarbonization

Electricity decarbonization

·       Switching to renewable electricity

·       Electricity grid decarbonization

 

 

Chart: Share price development, indexed at SEK 90.85 (first closing price)

 

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