Epiroc Is an Enabler of the Decarbonization Megatrend; Raising Our Fair Value Estimate to SEK 180

Epiroc has managed to enjoy superior operating metrics and greater resilience than competitors within the mining supply chain through its track record of innovative mining solutions and recurring aftermarket revenue. By specializing in niche equipment, which has high aftermarket requirements, Epiroc is less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Differentiation in drilling equipment and underground trucks has been achieved through specialized knowledge via investment into research and development, or R&D, and strong customer relationships. One third of its orders are to copper mines, a key metal to help decarbonize several industries.