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Sandvik

Sandvik is a global high-tech engineering group that offers innovative products and services that enhance customer productivity, profitability and sustainability

Operations are global, with sales in 160 countries. Sandvik’s business model aims to create value for customers with focus on their processes and efficiency improvement opportunities. The company’s strengths consist of technological leadership, unique expertise in materials technology and industrial processes, close cooperation with customers and a keen innovative ability. The company delivers solutions for operations particularly in the mining, engineering, automotive, energy, construction and aerospace industries. Important products include tools and tooling systems, equipment for the mining and construction industries, stainless steels and special alloys.

Sandvik has increased its focus on expanding its operations and strengthening its customer offering through a value-creating growth strategy. This strategy encompasses organic as well as acquisition-driven growth in, among other things, digital solutions that optimize customers’ productivity and enable greater sustainability, such as through electrification and automation.

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Active ownership in practice

In its capacity as a long-term active owner, Industrivärden engages itself in the portfolio companies’ strategic development. Against the backdrop of the Company’s business model, this concerns mainly matters pertaining to the portfolio companies’ boards and management teams, financial development and matters such as strategy, market position, sustainability, efficiency and capital structure.

Following are examples of important corporate governance matters and major strategic activities for long-term value creation that the companies have taken in recent years, where Industrivärden has played an active role through its work on the board and nominating committee.

Value-creating measures

  • Developed strategy and refinement of operations, adoption of new financial targets • Increased decentralization and formation of new business areas and segments to accelerate profitable growth in selected core businesses
  • Accelerated pace of acquisitions with completion of several add-on acquisitions in manufacturing, tools and mining areas
  • Internal separation of Sandvik Materials Technology for a separate stock market listing in 2022, subject to shareholder approval and provided that the conditions are considered to be right at the time
  • Implementation of new sustainability goals with focus on circularity, climate, safety and fair play
  • Numerous new directors elected to board and installation of Stefan Widing as CEO in 2020

Result

  • Higher profitability and stronger financial position
  • Significantly strengthened capacity to meet market fluctuations
  • Focused business
  • Accelerated pace of growth and strengthened exposure to faster-growing parts of the market

 

Last update: 07 Jul 2022