Targets and target fulfillment

Sandvik adopted new long-term financial targets in 2019, focusing on growth and profitabilty over a business cycle. Maintaining a strong financial position and dividend are also prioritized.

Financial Targets



Target: A growth of ≥5 percent through a business cycle, organically and through acquisitions.



The revenue growth 2017–2019 was 5 percent. In 2019 the revenue growth was –1 percent, due to a slowdown in the short-cycle business in the second half of the year.

Outcome: revenue growth (bar chart)

Trough EBIT margin


Target: A trough EBIT margin of ≥ 16 percent rolling 12 months, adjusted for items affecting comparabililty.



The EBIT margin adjusted for items affecting comparability amounted to 16 percent, 19 percent and 19 percent in 2017, 2018 and 2019, respectively.

Outcome: EBIT margin (bar chart)

Financial Targets

Dividend* payout ratio


Target: A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparabililty, through a business cycle.



The average payout ratio in 2017–2019 amounted to 43 percent. Sandvik’s strong performance in 2019 resulted in a proposed dividend of 6 billion SEK (5), corresponding to a payout ratio of 41 percent.

Outcome: average payout ratio (bar chart)

Net debt/equity ratio


Target: A net debt/equity ratio below 0.5.



The target was achieved as the net debt to equity ratio was 0.2.

Outcome: net debt to equity ratio (line chart)

* The growth and dividend targets refer to average through a business cycle.

Sustainability Targets 2019*

Health and Safety


Target: A Lost Time Injury Frequency Rate (LTIFR) of 1.4 and a Total Recordable Injury Frequency Rate (TRIFR) of 3.6.

Outcome 2019*


The LTIFR was reduced to 1.5 (1.7) and the TRIFR was reduced to 3.8 (3.9).

CO2 emissions


Target: Reduce CO2 emissions by 1.3 percent in 2019 through environmental improvement actions.

Outcome 2019*


The reported outcome of our environmental improvement actions resulted in a 2.6 percent decrease.

Sustainability Targets 2019*



Target: Increase the share of women in managerial positions by 3 percent annually. For 2019 the target was 18.2 percent.

Outcome 2019*


The share of women in managerial positions increased to 18.2 (17.7).

Code of Conduct


Target: Train 100 percent of employees, including long-term contractors, in our Code of Conduct.

Outcome 2019*


96 percent (94) of employees and long-term contractors (longer than three months) were trained in the Code of Conduct.

* Sandvik reports on the sustainability goals that were set for 2019 in 2018. We will report on the new, 2030 sustainability goals as of 2020. All areas above are covered in the new sustainability goals.