Presentation CMD 2019

1 Wifi code: EpirocCMD

Epiroc Capital Markets Day 2019 Mattias Olsson, Senior Vice President Corporate Communications Safety first! Practicalities Purpose Today’s presenters

Mattias Per Helena Martin Sami Jose Breakout Anders Olsson Lindberg Hedblom Hjerpe Niiranen Sanchez sessions: Lindén SVP Corporate President and SVP Mining and SVP M&A and President President Intelligent mining SVP Controlling Communications CEO Infrastructure Strategy Underground Rock Drilling Solutions and infrastructure. and Finance

Excavation (CFO)

Start

Q&A Q&A Break

6 Video

7 Epiroc Group Per Lindberg, President and CEO Epiroc’s key strengths

Leading Strong and High and resilient Driving the future History of value productivity proven operating aftermarket in intelligent creation for all partner in model exposure mining and stakeholders attractive niches infrastructure

9 Leading global productivity partner Epiroc in brief

• We provide customers in selected niches of the global mining and infrastructure with – innovative, safe and sustainable drill rigs, rock excavation and construction equipment, and tools – world class service to enhance productivity – solutions for automation and interoperability • We are a 146-year old start-up with >14 000 employees collaborating with customers in +150 countries • We have a strong, proven and value-creating business model – Annual* revenues of BSEK 41.1 – Operating margin* of 20.1% – ROCE* of 29.5%

Mining Infrastructure 76% of order intake* 24% of order intake*

Surface civil Underground civil Deconstruction and Underground mining Surface mining Exploration engineering and engineering recycling urban development

Customer characteristics Customer characteristics • Large customers • Large number of customers • High expenditure per customer, while limited share of customer’s total • Lower expenditure per customer capex and opex • Equipment moving from worksite to worksite • Equipment remain in the mine, only moving within the site • More project-based business • Continuous operations

*January - September 2019 11 Strong and proven operating model Focus and agility

Focused and High degree of Strong services Flexible Sharp focus on decentralized direct sales and business manufacturing innovation business services philosophy

Quick and ~85% direct sales Aftermarket 75% of product cost Leadership in efficient 65% of revenues for equipment is automation, decision-making purchased digitalization and battery Focused and decentralized businesses 2 segments and 7 divisions

Equipment & Service Tools & Attachments

Surface and Underground Rock Mining and Rock Hydraulic Drilling Solutions Rocktec Rock Drilling Tools Exploration Drilling Excavation Excavation Service Attachment Tools

Product companies, customer centers and distribution centers

13 Always close to our customers Global presence with high degree of direct sales and service

Sales in +150 countries

Revenues by region*

North Asia / America Australia 22% 26%

Top 10 customers represented 18% of revenues in 2018 South Africa / America Top 10 markets Middle 16% % of revenues 2018 East Australia 11% 13% USA 10% Europe Canada 8% 23% Russia 7% Chile 5% South Africa 5% *12 months until September 2019 China 5% Equipment & Service production facility India 4% Peru 3% Tools & Attachments production facility Sweden 3% 14 High proportion of recurring business

Revenues Harsh environments leads to significant maintenance requirements Equipment Service Tools & Attachments

26% 35% 65% Aftermarket

39%

Our service offering optimize our customer’s productivity and lowers the total cost of operations

12 months until September 2019 15 Attractive mix of revenues

Growing aftermarket making us more resilient

60.000 75 70 71 67 70 55.000 65 63 65 50.000 60 45.000 41 127 55 40.000 38 285 50

35.000 45 31 364 14 645 40 30.000 28 663 14 463 27 102 35 10 016 25.000 8 768 7 989 30 20.000 25

15.000 20 26 482 23 822 15 10.000 19 895 19 113 21 348 10 5.000 5 0 0 2015 2016 2017 2018 2019 RTM

Equipment revenues, MSEK Aftermarket share of revenues, % Aftermarket revenues, MSEK Average aftermarket share of revenues, %

16 Driving the future in intelligent mining and infrastructure Leadership in automation, digitalization and battery

• Market leading offering in automation and information Increasing levels of machine automation management solutions • Strong market attention for 6th Sense • 60% of equipment delivered with rig control system • 3 400 machines delivered with connectivity Mixed fleet automation • 43 projects for automation underground Fleet automation Multi machine MINE – 600 drill rigs equipped for complete automation of the automation INSIGHTS MINE drilling process INSIGHTS Single machine MINE – 30% increase in utilization of connected Simba production automation INSIGHTS Tele-remote

drills globally Onboard MINE operator assist INSIGHTS functions MINE • Autonomous and teleremote surface drilling in 16 INSIGHTS countries on 5 continents • Leader in battery-electric vehicles with 100 000 hours of operations

17 Value creation

Solid revenue growth Improving profitability 50 000 12 000 30

45 000 11 000 41 127 10 000 +12% 25 40 000 +9% 38 285 9 000 8 282 35 000 20.1 8 000 18.9 19.3 20 31 364 18.1 7 385 30 000 28 663 16.8 27 102 7 000 5 930 25 000 6 000 15 5 175 20 000 5 000 4 548 4 000 10 15 000 3 000 10 000 2 000 5

5 000 1 000

0 0 0 2015 2016 2017 2018 Sep. 2019 12M 2015 2016 2017 2018 Sep. 2019 12M

Revenues, MSEK Operating margin, % Operating profit, MSEK Operating margin, %, adjusted*

*Adjusted for the split costs from Atlas Copco (until 2018), change in provision for 18 long-term incentive programs, and restructuring costs of MSEK 179 in Q3 2019 Sustainability is integrated In our own and customer’s operations

Code of Automation Conduct

Responsible ”Walk the and efficient talk” value chain

Zero Diversity emission

19 Financial goals

Goals Description 2015 - 2018 Sept. 2019*

Compound Growth Annual revenue growth of 8% over a business cycle annual growth 10% 14% rate Average Industry-best operating margin, with strong resilience over Profitability operating 18.3% 20.1% the cycle margin

Improve capital efficiency and resilience. Average ROCE Capital efficiency 25.7% 29.5% Investments and acquisitions shall create value

Have an efficient capital structure and have the flexibility to Rating BBB+ Capital structure make selective acquisitions. The goal is to maintain an with a stable outlook investment grade rating Provide long-term stable and rising dividends to its Dividend for 2018 corresponds shareholders. The dividend should correspond to 50% of net Dividend policy to 47% of net profit profit over the cycle

*12 months until September 2019, reported 20 This is Epiroc today. Together, we have built it, together we will grow it.

United in performance. Inspired by innovation. Uncertainty weighs on near-term robust market

Robust production level among Mineral prices at good levels Strong customer focus for customers supporting strong improved productivity – leading to growth in aftermarket strong growth in connectivity and 150 150 automation 140 140 130 130 120 120 Global uncertainty increases 110 110 cautiousness and leads to 100 100 delayed projects 90 90 80 80 70 70 Actions to improve our efficiency

60 60 and resilience

2017 2019f 2020f 2021f Dec. 15 Jun. 16 Mar. 16 Sep. 16 Dec. 16 Jun. 17 Sep. 18 Dec. 18 Mar. 17 Mar. 19 Sep. 17 Jun. 19 Dec. 17 Mar. 18 Jun. 18 Sep. 19 50 2018 50

Copper production, kt, index Nickel production, kt, index Zinc production, kt, index Epiroc - Mining index, weighted price change

Citi: 4Q 2019 Commodities Market Outlook 22 Softer equipment demand, strong aftermarket

Orders received, Equipment Orders received, Service Orders received, T&A

5 000 5 000 5 000

4 500 4 500 4 500 4 234 4 054 4 097 4 147 4 000 4 000 4 000 3 713 3 761 3 806 3 601 3 580 3 589 3 500 3 147 3 355 3 442 3 500 3 388 3 500 3 281 3 181 3 142 3 053 3 112 2 982 2 826 3 000 3 000 3 000 2 760 2 676 2 727 2 665 2 341 2 550 2 470 2 500 2 500 2 500 2 306 2 270 2 239 2 197 2 285 2 000 2 000 2 000

1 500 1 500 1 500

1 000 1 000 1 000

500 500 500

0 0 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Orders received, Equipment, MSEK Orders received, Service, MSEK Orders received, Tools & Attachments, MSEK

23 Near-term demand expectations Epiroc Q3 Outlook

“In the near-term, we expect that the demand will remain largely at the level seen in the third quarter. That said, the economic environment continues to be uncertain.” Medium term - replacement demand

Equipment fleet, by year of commissioning • 24% of the equipment is older than 10 years • The average age is about 7 years • Utilization/running hours, maintenance, midlife services, etc. impact the condition of the machines – Average age and running hours vs. expectancy higher for underground equipment

2015 or later 2010-2014 2005-2009 2004 or earlier

Data based on orginal commissioning date 25 Long term market dynamics attractive!

A growing world… Increases the underlying need for infrastructure and minerals We have a strong position and the right solutions to … with increasing challenges to meet customers’ challenges meet the demand… Driving cost of hard rock excavation Safe and sustainable solutions, increased productivity and lower total cost of ownership …and strong focus on safety and sustainability

26 A growing world… (1/4) Increases the underlying need for infrastructure and minerals

Economic growth Population growth Strong urbanization trend

300 000 12 000 12 000 11 000 11 000 250 000 10 000 +0.8% 9 735 10 000 220 318 9 000 8 548 9 000 200 000 +3.0% 8 000 7 631 8 000 7 000 7 000 +1.4% 6 620 150 000 138 169 6 000 6 000 5 000 5 000 4 197 68% 100 000 85 804 4 000 4 000 of world population 3 000 3 000 55% 50 000 2 000 2 000 of world population 1 000 1 000 0 0 0 2018 2030 2050 2018 2030 2050 2018 2050

Global GDP, BUSD* World population, millions** World popluation living in urban areas, millions***

* OECD 2018 – Economic Outlook No 103 - https://stats.oecd.org/Index.aspx?DataSetCode=EO103_LTB 27 ** United Nations 2019: https://population.un.org/wpp/Publications/Files/WPP2019_Highlights.pdf *** United Nations 2018 - https://www.un.org/development/desa/en/news/population/2018-revision-of-world-urbanization-prospects.html A growing world… (2/4) Increases the underlying need for infrastructure and minerals

Global construction market Total mining capital expenditure drill-to-mill 15 000 60 14 000 55 +4% 51 13 000 12 400 -4% +6% 12 000 50 12 000 11 500 46 47 11 100 44 44 11 000 10 600 45 42 +4% 10 300 10 000 9 500 9 800 40 39 9 000 37 36 36 8 600 8 800 9 000 8 300 35 33 7 900 8 000 7 700 31 31 7 200 30 28 7 000 25 6 000 25 5 000 20 4 000 15 3 000 10 2 000 1 000 5 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Global construction market, BUSD* Total mining expenditure drill-to-mill, BUSD*

*McKinsey 2018 (Global construction market) and 2019 (Total mining capital expenditure for equipment, excluding infrastructure) 28 A growing world… (3/4)

Favorable hard rock exposure

Gold Infrastructure 21% 27%

17% Copper 12% Other

2% 3% 9% Zink 4% Coal 5% Nickel, Lead Platinum Iron

Favorable trends Mixed trends

Estimated exposure of revenues in 2018 29 A growing world… (3/4) Example: Electrification driving metal demand

Electric cars sold annually, millions Metal used per car, kg

+2 050% 83 Assuming that 30% of all cars sold in 2030 are electric: Copper 60 43 23 • The demand for copper would increase by an additional 10% +1 050% 32 • The demand for nickel would Nickel 11 23 increase by an additional 40% 3 • This is only for the cars. Network 9 grids, chargers etc. are not included.

Cobalt 2

2 2 0

New Policies Scenario EV30@30 Scenario Battery-electric Hybrid 2018 2030 Combustion

https://www.iea.org/publications/reports/globalevoutlook2019/ Citi: 4Q 2019 Commodities Market Outlook 30 … with increasing challenges to meet the demand… (1/2) Customers meeting productivity and complexity challenges

Average overall equipment effectiveness in different industries, % Strong focus on productivity

150 Underground mining 29 140 130 120 38 Open pit mining 110 -27% 100

Crushing & grinding 90 70 80 70 60 88 Oil & Gas 50 40

90 Steel 30 20 10 Oil refining 92 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

MineLens Productivity Index**

MineLens, McKinsey, October 2019 31 … with increasing challenges to meet the demand… (2/2) Increasing cost of hard rock excavation

Depletion of ore grades Trend towards underground expected to be strong

2.6 2.4 2.2 2.0

1.8 64 71 67 67 1.6 77 1.4 1.2 1.0 0.8 0.6 36 0.4 29 33 33 23 0.2 0.0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2019 2025 2030 2035 2040

Underground average ore grade (Wt by paid Copper)* % of Open pit production, Copper** Surface average ore grade (Wt by paid Copper)* % of Underground production, Copper**

*The graph was obtained from Wood Mackenzie’s Copper mine cost service, a product of Wood Mackenzie 32 **McKinsey and MineLens, 2018 …and strong focus on safety and sustainability Customer’s taking on the sustainability challenge*

Category Key subcategories Why do we always put safety first? Reduce number of casualties Because our equipment and solutions make a difference! Health and safety Reduce number of injuries Reduce illness -87% Reduce visual impact on landscape 15 Quality of life Reduce vibration A strong safety focus Reduce noise 4 in the industry has led

Socialimpact Create jobs to a decrease in Socio-economic Educate and develop skills occupational fatalities Create sustainable infrastructure and housing in metals mining by almost 90% in 30 Reduce emissions years! Air Reduce mining or blasting dust 11 Reduce road dust Reduce acid mine drainage 2 Water Minimize shortage 0 Surface fatalties, in thousands** Improve sedimentation 2 Underground fatalties, in thousands**

Reduce waste 1990 2018

Land Protect biodiversity Environmental Environmental impact Reduce heavy metals spilage

*ATKearney - https://www.atkearney.fr/documents/20152/434588/Mining%2BTakes%2Bon%2Bthe%2BSustainability%2BChallenge.pdf/f002cd17-aafd-33a8-9372-9e40c849db84?t=1520575913266 33 ** Centers for Disease Control and Prevention - https://wwwn.cdc.gov/NIOSH-Mining/MMWC/Fatality/NumberAndRate?StartYear=1983&EndYear=2018&SelectedOperatorType=0&SelectedMineType=0&SelectedCommodity=2 The right solutions to meet customers’ challenges

Service and maintenance

We have a strong position and the right solutions to meet customers’ challenges Productivity enhancing solutions Safe and sustainable solutions, increased productivity and lower total cost of ownership Automation, electrification and digitalization

34 Video Smart, safe, seamless

35 Strategy and foundations for success Value creation for all stakeholders

Operational Focus on Innovation and Presence and People and Safety and and service Outperformance attractive niches penetration leadership expertise sustainability excellence

Strong and resilient aftermarket business Helena Hedblom, Senior Executive Vice President, Mining & Infrastructure High proportion of recurring business

Revenues Harsh environments leads to significant maintenance requirements Equipment Service Tools & Attachments

26% 35% 65% Aftermarket

39%

Our service offering optimize our customer’s productivity and lowers the total cost of operations

12 months until September 2019 39 Solid growth in the aftermarket business

Strong aftermarket business provides resilience

28 000 Epiroc, incl. hydraulic attachments as from 26 482 26 000 2015 +7% 23 822 24 000

22 000 21 348 19 895 20 000 +8% 19 113 18 000 18 000 17 400 17 200 15 900 16 000 14 000 14 000 11 900 12 000

10 000

8 000

6 000

4 000

2 000

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep. 2019 12M Aftermarket revenues, MSEK

2009-2014 Atlas Copco Mining and Rock Excavation Technique. 2015-2019 Epiroc. 40 Keys to aftermarket success

Presence Efficient Technical Focus People and supply chain know-how leadership

41 Trends and customer values in aftermarket

• Safety and sustainability • Productivity and efficiency • Total Cost of Ownership (TCO) • Connectivity – digitalization

42 Broad aftermarket offering

• Service • Supply of • Midlife • Rock drilling • Hydraulic agreements spare parts services, tools attachments and audits and training, and components other service products

Service 39% Tools & Attachments 26%

43 A strong service business

Revenues Service revenues Service 16 000 15 746 +7% 15 000 14 302 14 000 13 000 12 107 12 000 11 807 11 188 11 000 10 000 9 000 8 000 65% 7 000 Aftermarket 6 000 5 000 4 000 3 000 2 000 39% 1 000 0 2015 2016 2017 2018 2019 12M Sept

Service revenues, MSEK

12 months until September 2019 44 Presence is vital and a competitive advantage!

>100 service workshops >6 100 3 employees remanufacturing in Service centers >280 3 sites with service regional contracts with people Service centers distribution on site Remanufacturing centers centers

*Employees in Service, excluding additional workforce 45 Equipment life cycle and service offerings

Service – value proposition Value Midlife services Connectivity Reman solutions Training

Custom engineered solutions

Spare parts / service agreements

Equipment life cycle 46 Examples from our broad service offering

Replacement Service Reman Midlife services Custom Training Telematics parts and kits agreements solutions engineered products (connectivity) and audits solutions

From parts provider to partner Service agreements revenues

• Clear service value proposition +27% 140 • Service agreements for 127 120 113 different demands 100 100

• Lifecycle management 80

0 2017 2018 Sept. 2019 Service agreements revenues, index

48 Reman solutions

New lease on life Reman solutions revenues • Sustainable remanufactured +80% 178 180 components 180 160 • Original Equipment 140 Manufacturer (OEM) certified 120 100 quality 100 80 60 40 20 0 2017 2018 Sept. 2019

Reman solutions revenues, index

49 Midlife services

Extend equipment life Midlife services revenues • Replacing old with new +56% components, returning 160 156 equipment to maximum 140 129 120 productivity and operating 100 efficiency at a fraction of the 100 80 cost of a new machine. 60

0 2017 2018 Sept. 2019

Midlife services revenues, index

50 Custom engineered solutions

Engineered to meet Custom engineered solutions revenues individual needs

• More than spare parts, less 250 +106% than a machine 206 200 180 • The solution is designed to 150 match the machine 100 configuration, and to 100

incorporate the latest version 50 of components to ensure 0 both safety and productivity 2017 2018 Sept. 2019

Custom engineered solutions revenues, index

51 Training products

A safe way to generate value Training products revenues

• Training tools that raise +64% 180 operators’ skills, increase 164 Full cabin their ability to master the 160 140 129 Desktop machine and drilling 120 100 expertise, right from the start. 100 80 60 40 20 0 Classroom trainer 2017 2018 Sept. 2019

Training products revenues, index

52 Connectivity – an enabler for service transformation

Connectivity Data analysis Data driven service

Epiroc proactively Customers are empowered with Whether you are supported automatically, understands the needs easy and context-aware ability to remotely or on-site, the solution allows you for service, spare parts find the products and services to request and follow up on your support and consumables. relevant to their situation. needs, ensuring you stay operational

54 Tools & Attachments

Revenues Tools & Attachments revenues Tools & Attachments 11 000 10 736 +7% 10 000 9 519

9 000 8 738

8 088 7 925 8 000

26% 7 000

6 000 65% 5 000 Aftermarket 4 000

3 000

2 000

1 000

0 2015 2016 2017 2018 2019 12M Sept

Tools & Attachments revenues, MSEK 12 months until September 2019 55 About Rock Drilling Tools

Summary • Key contribution to customer productivity total cost of operation – Invisible products that do the job – Presence and supply-chain key • Complementing Epiroc equipment innovation • Resilient business • 70% of sales through some level of customer agreements • Raw material to finished goods

56 Redefining the offering in Rock Drilling Tools

Grow and acquire in core businesses

Tophammer Rotary & raiseboring Down-the-hole Exploration Ground support

Divest / exit non-core businesses

Oil & Gas Geotechnical Handheld

57 Innovation driving the business forward

Digitalization • 6th Sense • Seamless view of rock drilling tools performance • Co-operation with capital equipment divisions to enable real-time performance monitoring • Smart Inventory Management • Cost per measure contracts – Daily tracking and reporting on performance of consumables by rig and application can be digitalized

58 Innovation driving the business forward

Product development • Power Bit Underground – Faster penetration rate – 37% longer service life • New M-series DTH hammers – The fastest DTH hammer ever with a unique piston design allows much higher impact frequency. This means also lower fuel consumption and lower running costs.

59 About Hydraulic Attachments

Key summary • Premium hydraulic attachment tools for demolition, recycling, mining and quarrying • Key contribution to customer productivity • Mainly towards infrastructure • Distributor sales – Synergies with Epiroc - market presence and expertise

60 We make a multi-tool out of our customers’ carriers Hydraulic Attachment Tools

Handheld Tools Concrete equipment Breakers Drum Cutters

Shears: Steel Cutters, Concrete Busters, Combi Cutters

Bulk Pulverizer Demolition Pulverizer

Bucket Crushers / Grapples Screeners

Magnets Compactors

Related service & aftermarket business

61 Silent demolition tools

• The silent demolition product Silent demolition tools revenues range has been developed +31% and the offering is broader 140 131

120 114 100 100

0 2017 2018 Sept. 2019

Silent demolition tools, revenues, index

62 Hydraulic attachment aftermarket

• Strong focus on the hydraulic Hydraulic attachment aftermarket revenues attachments service and +21% consumables business 140 121 120 109 100 100

0 2017 2018 Sept. 2019

Hydraulic attachment aftermarket, revenues, index

63 Keys to aftermarket success

Mergers and Acquisitions Martin Hjerpe, Senior Vice President M&A and Strategy Continuous focus on acquisitions

67 Foundations for success

Focus on Outperformance attractive niches

68 Adding capability through M&A: Key criteria

Stand-alone Strategic fit and Potential to become or attractiveness synergies with Epiroc remain number 1 or 2

“Is this target attractive and “Does it support a core “Does it provide a path to be well-performing in itself?” business strategy of Epiroc?” undisputed market leader?”

69 Expansion logic with different strategic rationale

Outside core “New products to new customers”

Adjacent to core “Broaden our offering to existing customers”

Core markets “Consolidate and gain scale”

Automation, digitalization and electrification for underground applications Sami Niiranen, President, Underground Rock Excavation Division Sami Niiranen – President Underground Rock Excavation Mining Engineer, Helsinki, Finland

1997 2002 2004 2007 2012 2014 2016 2018

Finland and Finland Finland Sweden Sweden Ghana Finland Sweden Australia Nuclear Waste Key Account Global Business Marketing Manager General Manager General Manager President, Mining Management Manager Manager and Regional Underground Engineer Finland Atlas Copco Business Manager Rock Excavation Division

73 A leader in automation, digitalization and electrification Timeline for underground equipment

– 2010 2010 – 2020 2020 – • Rig Control System (RCS) • Increased demand for automation • Interoperability (mixed fleet) • Single-machine automation • Digitalization creates opportunities • Information management • Electric-hydraulic drilling equipment • Electrification strategies • Serial production of battery vehicles • Data collection • Partnerships and collaboration • New business models

74 Increasing levels of machine automation Innovation continuously improve productivity for our customers

Mixed fleet automation Fleet automation MINE Multi machine INSIGHTS

automation MINE INSIGHTS MINE Single machine INSIGHTS automation Tele-remote MINE INSIGHTS Onboard operator MINE assist functions INSIGHTS

75 6th Sense is the Epiroc way to optimize our customers' value chain through automation, system integration and information management – enabling a smart, safe, seamless operation Epiroc’s world leading automation solutions brings Apatit JSC to new levels Leading solution for production drilling automation 6th Sense Production solution – Apatit JSC

• Teleremote, ABC Total and Certiq telematics for remote control and monitoring of production drilling – One operator controls six production drill rigs – Remote transmission of drill plans – Automatic drilling • Improved safety • Increased productivity by 20%

78 Video - Apatit

79 Epiroc sets the standard of loader automation Highest level of loader automation 6th Sense Transport solution – Scooptram Automation Total

• Automation for multiple loaders, operated/monitored from control room

Operator station • Safer work environment by removing people from hazardous areas Multiple loaders • Higher fleet performance through automated

traffic control Light curtains • Optimized Load-Haul-Dump cycle with IT infrastructure autonomous functions Barrier cabinet

81 Epiroc to digitalize Pucobre’s mining operations in Chile Information Management 6th Sense Mine Management Solution - Pucobre

• Information management and system integration of Pucobre’s existing systems • Planning and dispatching system for Transport, Production and Development • Epiroc Activity Planner and Mobilaris platform with Scheduler and Operator Client • Collaboration between Pucobre, Epiroc and Mobilaris • Support and maintenance agreement

83 Video - Pucobre

84 Epiroc is a leader in battery-electric vehicles Battery-electric vehicles

• Benefits include improved health and safety, reduced emissions, lower total cost of operation and higher productivity • 100 000 operating hours accumulated to date • >70% reduction on energy consumption, mainly from reduced ventilation • 10% increased productivity for Minetruck MT42 Battery with faster ramp cycle time Scooptram ST14 Battery, Minetruck MT42 Battery and Boomer E2 Battery at Agnico Eagle’s Kittilä Mine, Finland

Sustainable Intelligent Mining Systems (SIMS) project is part of Horizon 2020, the European Union’s most extensive research and innovation program. Epiroc is coordinator.

86 Improved stability with Battery as a Service Adding another aftermarket revenue stream

• Epiroc will take full responsibility for the batteries, including maintenance, technology upgrades, and recycling • Enables close collaboration with customers and ancillary business • Full access to performance information and other data  competitive advantage

Capex Opex Opex Opex Opex Capex Opex Opex Opex Opex

87 The future is electric

Our ambition is to produce the world’s greenest machines, using the world’s greenest cells, producing the world’s greenest metals, doing our best for our planet

Cell Module Sub pack Pack

Automation and information management for surface applications Jose Manuel Sanchez, President, Drilling Solutions Jose M Sanchez – President Drilling Solutions MSc Mining from Madrid School of Mines, Master’s Degree in Marketing & Sales Management

1988 1994 1996 1998 2002 2007 2015

Spain China Sweden France Mexico Chile USA Reg Underground Rock Product Manager 6 month General Manager Managing Director President of Excavation Manager & for Surface Drilling assignment Drilling Solutions Marketing Manager Exploration & Area division Nanjing PC Manager for Americas

Distinctions: • Chairman of Epiroc intercompany Legal entities in the Americas • Board member of ASIM (party owned by Epiroc Drilling Solutions) • Medal of Honor as Engineer of the year 2016 by the Mining Engineers Association of Central Spain

92 Envision Future mine

93 6th Sense – Information on demand: Instant insight about the equipment performance

94 6th Sense – Fully autonomous electric drill in arctic conditions at Boliden, Sweden Video - Aitik

96 6th Sense – Autonomous SmartROC D65 at Newmont Goldcorp in Canada Video - Newmont

98 6th Sense – Autonomous Pit Vipers at Newmont Goldcorp, Mexico Video – Newmont Goldcorp, Penasquito

100 6th Sense – Control rooms keep operators from hazardous environment Video – Los Bronces

102 Building the legacy

Acquisition 100th Pit Viper

2000 2006

2004 2007

First Pit Viper All Pit Vipers robots

103 What’s on today

First Autonomous BenchREMOTE Electric station in Sweden BenchREMOTE station

First Autonomous SmartROC D65 First Teleremote First Remote site in Canada in Ukraine

BenchREMOTE station BenchREMOTE First Remote station in Morocco

First Autonomous BenchREMOTE in USA station BenchREMOTE station First Autonomous in Mexico

First Teleremote Quellaveco First Autonomous First Multipass in Papua New Guinea order in Chile Autonomous in South Africa BenchREMOTE BenchREMOTE station station First regional rollout in First Remote BenchREMOTE First Autonomous station Australia in Chile drill in operations BenchREMOTE in Australia BenchREMOTE station station First Autonomous First BenchRemote in South Africa station First Autonomous site in Australia Continuing to build the legacy Forward Looking

• AGILE methodology for • FAST, Field Automation • Global competence with faster time to market Service Team, to ensure Surface Automation Center successful customer roll outs

105 Foundation for 6th Sense

106

Strong and proven operating model – the financials Anders Lindén, CFO Strong and proven operating model Focus and agility

Focused and High degree of Strong services Flexible Sharp focus on decentralized direct sales and business manufacturing innovation business services philosophy

Equipment & Service Tools & Attachments

Surface and Underground Rock Mining and Rock Hydraulic Drilling Solutions Rocktec Rock Drilling Tools Exploration Drilling Excavation Excavation Service Attachment Tools

Product companies, customer centers and distribution centers

110 Decentralization in our DNA

Advantages

• Entrepreneurial organization

• Quick decision making and adoption to shifting environment

• Strong ownership and commitment to create results

• Creates strong internal pipeline of good leaders

Challenges

• Governance model important

• Need clear communication on strategy to get ”buy-in”

• Courageous leaders that dare taking decisions

• Inefficiencies due to ”double positions”

111 Efficiency potential

Taking action in in administration and marketing

8 000 20 7 500 7 000 6 500 14.6 6 000 14.6 15 13.5 13.8 5 500 13.3 5 000 4 500 4 000 10 3 500 3 000 5 662 2 500 5 097 2 000 4 178 3 967 4 238 5 1 500 1 000 500 0 0 2015 2016 2017 2018 Sep. 2019 12M Program in place: Annual savings of MSEK 300 Marketing and administration expenses, MSEK, adjusted* Potential restructuring cost of ~MSEK 50-100 in % of revenues

* Adjusted for change in provision for long-term incentive programs and restructuring costs of MSEK 62 in Q3 2019 112 Flexible manufacturing philosophy

We only produce on orders (equipment) which enables quick and smooth adjustments in manufacturing levels in ups and downs

We only produce core-components to safeguard a flexible manufacturing set-up whilst protecting our innovations Example Boomer:

Did you know? 75% of product cost for equipment is purchased

113 Benefits of a flexible manufacturing philosophy

High returns Limited investment requirements in manufacturing

40 50 000 4.0 2 000 3.6 45 000 35 3.5 32.0 3.2 3.2 40 000 29.5 30 3.0 1 500 27.4 1 384 35 000 1 297 25 2.5 28 050 30 000 374 301 1 014 20 23 086 25 000 2.0 1 000 21 674 20 000 371 15 1.5 459 504 15 000 10 1.0 289 500 10 000

5 0.5 551 492 5 000 354

0 0 0 2017 2018 Sep. 2019 12M 2017 2018 Sep. 2019 12M

ROCE, 12m, % Capex, % of revenues Intangible assets, MSEK Avg. capital employed, MSEK Rental equipment, net, MSEK Property, plant, and equipment, net, MSEK

*Not adjusted for IFRS 16 114 Core component manufacturing and assembly

We can do ” even better!

Main manufacturing sites • Örebro – Sweden • Fagersta – Sweden • Nashik - India • Garland – USA • Nanjing – China Equipment & Service production facility Tools & Attachments production facility

115 Presence is more important than manufacturing footprint

116 High degree of direct sales and service

85% direct sales

117 Direct sales also implies ”higher” working capital

Net working capital

30 000 45 Making Epiroc’s supply chain 40 Supply-chain 25 000 a competitive advantage 34.3 35 improvement program 31.9 31.8 • Initiated in Q1 2018 20 000 30 • Parts and consumables 25 15 000 14 124 • Gradual improvements expected 12 158 20 until 2021 9 991 10 000 15 • Availability improved with more than 4 percentage points YTD 10 5 000 • Lower transport costs 5 • Reduced transport emissions 0 0 2017 2018 Sep. 2019 12M

Avg. Net working capital/revenues, % Avg. Net workiing capital, MSEK

118 CO2 emissions decreasing Supply-chain improvement program

Transport CO emission, spare parts and rock drilling tools, tons 2 An absolute CO2 saving of 19 505* ton 120 translates into: 110 -18% • Greenhouse gas emissions from 4 141 100 100 passenger vehicles driven for one year 90 82 • CO2 emissions from 2 336 homes' electricity 80 use for one year 70

60 • Greenhouse gas emissions avoided by four

50 wind turbines running for a year 40 • Carbon sequestered by 322 519 tree 30 seedlings grown for 10 years 20

0 Q3 2018 12m Q3 2019 12m

Transport CO2 emission, spare parts and rock drilling tools, tons

119 * Rolling twelve months Q32019 vs Q32018. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator Direct sales = Long lasting customer relationships

We aim to solve our We innovate and We are always close We produce once We can offer customers sell productivity to our customers we get the order financing challenges solutions

We are in it for the long run. Our customers know and appreciate it!

120 Strong and profitable aftermarket business

• A broad global aftermarket … representing a big … with continuous offering… proportion of revenues… improvements for increased • Spare parts profitability • Service agreements, incl. labor • Increase efficiency and knowledge • Consumables of service personnel • Hydraulic attachments • New technical tools to enable 65% more efficient operations • Improved value proposition towards customer by differentiation

121 Sharp focus on innovation Collaboration enables leverage on R&D

Research and development expenses

1 800 3.0 Internal Supplier R&D R&D 1 600 2.6% 2.5 1 400 Associates / 1 200 2.0 Partnerships 1 054 JV 1 000 977 1.5 795 800

600 1.0

400 0.5 200 Innovation leader with the highest ethical standards 0 0.0 2017 2018 Sep. 2019 12M

R&D spend 12 months, % of revenues R&D spend 12 months, MSEK

122 Video Sustainable Underground Mining

123 https://sustainableundergroundmining.com/ Resilience! Restructuring with limited restructuring costs

Restructuring cost, absolute and in % of revenues

500 1.5 400 300 1.0 200 100 0.5 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 -100 -0.2% -0.4 -0.4% -65 -0.4% -200 -81 -120 -179 -0.5 -300 -400 -415 -1.0 -500

-600 -1.6% -1.5 -700

-800 -2.0 -900 -1 000 -2.5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sept. 2019 Restructing costs, MSEK in % of revenues

Restructuring costs 2009-2015 were reported under Atlas Copco Mining and Rock Excavation Technique business area 124 Costs in 2014 and 2019, was mainly write down of assets related to discontinued businesses, 2014 Powercrusher and 2019 Handheld rock drilling tools Let’s talk about cash

Operating cash flow varies over the cycle Operating cash flow and Net profit 2 400 100 • Operating profit 2 242 2 200 90 • Working capital depending on cycle 2 000 1 883 80 1 800 • Capital expenditures at low levels 1 680 1 623 70 – Rental equipment, net 1 600 1 506 1 412 1 374 60 1 400 1 313 1 321 1 341 – Limited investments in other property, plant and 1 242 1 111 equipment 1 200 1 104 50 1 049 1 078 1 067 1 081 944 – Intangible assets mainly R&D and IT 1 000 40 777 800 666 30 600 472 20 400 199 200 10

0 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Operating cash flow, MSEK Net proft, MSEK

125 Strong financial position

Net debt and Net debt/EBITDA*

0.50 6 000

0.45 0.43 5 500 Epiroc is to have an efficient capital 0.40 0.39 0.39 5 000 0.40 structure and have the flexibility to 0.35 4 500 ” 4 217 make selective acquisitions. The goal is 0.35 4 000 3 641 to maintain an investment grade rating. 0.30 3 500 3 146 3 027 2 125 0.24 0.25 3 000 2 550 1 982 2 416 0.20 2 500 0.14 2 000 0.15 1 208 2 012 1 500 BBB+ 0.10 2 092 1 000 1 659 Epiroc is assigned a BBB+ long-term 0.05 500 404 issuer credit rating with a stable outlook 0.00 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Net debt/EBITDA ratio Net debt, MSEK, end of period Net debt, IFRS 16, MSEK, end of period

* Numbers for 2018 not restated for IFRS 16. 126 Capital allocation strategy

5.00 4.50 4.50

4.00 Dividend Epiroc’s goal is to 3.50 ”provide long-term stable 3.00 and rising dividends.

Acquired growth 2.50 47% payout 2.00 The dividend should correspond to 50% of net 1.50 Organic growth profit over the cycle. 1.00 2.10

0.50

0.00 2018 EPS, SEK Dividend, SEK

127 Epiroc’s key strengths

128 129 Q&A United. Inspired. Performance unites us, innovation inspires us, and commitment drives us to keep moving forward. Count on Epiroc to deliver the solutions you need to succeed today and the technology to lead tomorrow. epiroc.com Disclaimer - Some statements in this presentation, or in conclusion to it, are forward-looking and the actual outcome may be different. In addition to the factors explicitly commented upon, the actual outcome may be affected by other factors such as macroeconomic conditions, movements in foreign exchange- and interest-rates, political risks, competitor behavior, supply- and IT-disturbances. You may not copy or use any data and information in this document except when expressly permitted by Epiroc and/or other suppliers and companies.