Sandvik

Operations

Sandvik is a global high-technology industrial group with advanced products and operations in 130 countries. The Group works in three business areas in which Sandvik has a world leading position.

Tooling specializes in
cemented carbide tools and high-speed steel for metal cutting. Mining and Construction specializes in machines and tools for the service, 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% of the capital and 89% of the votes), which is active in metal
cutting tools. Sandvik’s strategy is based on a number of strength factors: unique know-how in materials technology and about customers’ processes, 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 improvements in 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.

• Olof Faxander new CEO.
• Acquisition-driven growth in selected areas.
• Powerful adaptation of costs and production capacity as a result of the financial crisis.
• Strengthened positions in emerging markets.

Ownership focus

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

Sandvik - Performance 2010

• Net sales rose 17% to SEK 82.7 billion.
• Income after net financial items rose sharply to SEK 9.4 billion (–3.5).
• Operating income was SEK 4.3 billion (–0.5) for Tooling , SEK 4.7 billion (0.5) for Mining and Construction, and SEK 1.5 billion (–1.1) for Materials Technology.
• Consolidation and completion of futureoriented investments in higher sales, productivity and profitability.
• Acquisition of Shanghai Jianshe Luqiao Machinery strengthens Sandvik’s position in China.