Investment case

Sandvik’s equity story is built on more than 150 years of leading material and application knowledge with close long-term customer relations based on our offering to increase productivity. Sandvik has reported a significant improvement in performance since 2016, the result of a strong market situation in combination with a more decentralized business model and operational decisions based on the priorities of stability and profitability before growth. Additional operational finetuning remains for continuous improvement, but the focus has moved increasingly towards growth

From establishing stability to leveraging on leading positions

2016Setting the structure

Portfolio review and decentralization

2017Reinforcing performance culture

Performance management and improved profitability

2018Focus on long-term success

Next step for profitability and growth

Generating growth

  • All businesses should maintain or be able to achieve a No. 1 or 2 position, supported by new product launches in core segments and applications in order to sustainably drive customers’ productivity.
  • Acquire growth within already stable and profitable divisions.
  • Expand the customer offering in Sandvik Machining Solutions to cover a large part of the manufacturing value chain, also outside of the machining phase in to pre- and post machining.
  • Growth in the aftermarket business in Sandvik Mining and Rock Technology.
  • Grow the stable and profitable parts of Sandvik Materials Technology.

Cost efficiency

  • Operating decisions are taken close to customers, in the different divisions, making Sandvik more agile to changes in customer requirements hence reducing volatility in earnings.
  • Targeting productivity improvements by 3 percent annually.
  • Continuous review of manufacturing footprint.

Portfolio optimization

  • Acquisitions in the high-performing areas supported by strengthened balance sheet.
  • Continuous review of operations to focus on core businesses where Sandvik is or can be global No. 1 or 2.

Capital efficiency and cash flow generation

  • Capital allocation to the higher growth and return areas.
  • Stringent management of net working capital.
  • Continued review of the supply chain.

Delivering on our promise

Target mark (icon)

Ahead of plan:
Reached profitability target

Declining bars (icon)

Freedom of chioce

Portfolio optimization (icon)

Investing and well-positioned:
For growth

Shareholder Value