We View Epiroc's Capital Allocation Rating as Exemplary; Shares Are Fully Valued

Uncontrollable and cyclical factors such as commodity prices and general economic activity drive demand forEpiroc's products. Therefore, Epiroc’s strategy has focused on areas that it can influence, such as lowering production costs and increasing sales penetration in more profitable areas of the business, such as the aftermarket segment. While these actions are replicable and have resulted in the margin differential with its closest rival Sandvik narrowing, Epiroc (including former parent Atlas Copco) has historically been successful in quickly executing these initiatives before others.