Strengths and goals (Investment case)

The mining and infrastructure industries benefit from structural growth in demand. However, to meet this demand is becoming increasingly challenging while undergoing a sustainable transformation. We are therefore present in niches where our technically advanced equipment and our aftermarket solutions are performance-critical for customers' operations.

Together with customers and business partners, we develop safe and sustainable products and solutions that increase productivity and lower costs. Automation, electrification and digitalization are in focus in our innovation work.

Our aftermarket solutions and our global service presence increase the productivity and extend the service life of our equipment while strengthening our customer relationships. By constantly developing new solutions and services, we can further grow our resilient aftermarket business.

We have a focused and decentralized business that can be adapted quickly and efficiently when demand changes. Our strength is based on a high proportion of direct sales, a strong service business and a flexible manufacturing philosophy. We relentlessly strive for operational excellence.

 

• Focus and decentralization 
  • Quick and efficient decision-making
• High degree of direct sales
  • ~87% direct sales
• Strong aftermarket business
  • Aftermarket 69% of revenues
• Flexible manufacturing
  • 75% of product cost for equipment is purchased
• Innovation and collaboration
  • Leadership in automation, digitalization and electrification

We create value for our stakeholders by conducting responsible business while striving to achieve sustainable profitable growth. Of course, embedded in our strategy is also to create options for the future. For example, by making acquisitions. Our key criteria for acquisitions  are stand-alone attractiveness, strategic fit, synergies, and the potential to become or remain market leader.

 

To ensure that we work with the sustainability issues that are most relevant to Epiroc, we conduct materiality analyses on a regular basis. Based on the outcome, we cluster our most material topics into four focus areas and identify key performance indicators (KPIs) for each of the topics to help us measure their relevance and impact.

 

• We use resources responsibly and efficiently
• We invest in safety and health
• We grow together with passionate people and courageous leaders
• We live by the highest ethical standards

Our customers are mainly found within mining and infrastructure. Our role is to ensure that our customers can work in the safest, most sustainable and efficient way possible. Our innovations are needed if the global community is going to succeed with its ambition to reduce carbon dioxide emissions, while also providing for a growing population. In our long-term sustainability goals for 2030, we commit to, for example, halve absolute CO2e emissions in our own operations and from the use of sold products. In November 2021, these goals were validated by the Science Based Targets initiative (SBTi). This means that our goals are aligned to keep global warming at a maximum of 1.5° C, consistent with the Paris Climate Agreement and the Glasgow Climate Pact. It is great to have our goals confirmed as industry leading and well above SBTi’s minimum requirements. 

Epiroc has a strong corporate culture with passionate employees, which creates the foundation for remaining an attractive employer and a high-performing organization. Sustainability is integrated into everything we do and our innovation agenda goes hand-in hand with our customers’ sustainability agenda. Our strong foundation is a competitive advantage.

The page was updated 2023-03-08