Sandvik

Operations

Sandvik is a global high-technology engineering group with advanced products and representation in 130 countries.

The Group works in three business areas in which Sandvik has world leading positions. Tooling specializes in cemented carbide tools and highspeed steel for metal cutting. Mining and Construction specializes in machines and tools for the mining and construction industries. Materials Technology manufactures high value-added steel products based on advanced metals and ceramic materials.

The Sandvik Group also includes the partly owned listed company Seco Tools (60% equity interest), which is active in metal cutting tools. Sandvik’s strategy is based on a number of strength factors: advanced R&D, high value-added products, in-house manufacturing, direct sales to end customers, efficient logistics systems and a strong corporate culture. Sandvik’s products and services are designed to contribute to customers’ productivity and profitability. Sandvik is a global company, but works as a local partner.

Sandvik - Our ownership perspective

Through a niche focus and strong R&D position, Sandvik has established a world-leading position in materials technology with products primarily for the manufacturing and mining industries.

• Acquisition-driven growth.
• Restructuring program designed to adapt costs and production capacity to market situation.

Ownership focus

Earnings improvement through organic growth combined with continued acquisitions and efficiency-improvement measures.

Sandvik - Performance 2009

• Net sales fell 30% to SEK 71.9 billion.
• Income after net financial items amounted to SEK –3.5 billion (10.6).
• Operating income was SEK –0.5 billion (5.5) for Tooling, SEK 0.5 billion (5.0) for Mining and Construction, and SEK –1.1 billion (1.2) for Materials Technology.
• Restructuring measures has been carried through to adapt costs and production capacity to the prevailing market conditions.
• Working capital was lowered by more than 30%, and operating cash flow was slightly more than SEK 12 billion.