Sandvik as an investment

We continue to thrive on our value creating offering of productivity and sustainability based on more than 150 years of leading materials and applications know-how. We stay relevant by advancing the world through engineering, expanding our core competencies and adding new digital technologies, enabling us to broaden our customer offering. Our market-leading position and strong customer relationships combined with a decentralized organization enable us to respond faster to market trends and customer needs.

In a cyclical world, our decentralized business model helps us to be more flexible, reduce earnings volatility and increase predictability. Our proven resilience in earnings and a strong balance sheet creates a solid platform from which to leverage interesting growth opportunities.

Combine core skills with new technologies

Combine core skills with new technologies (graphic)

Leading position based on expertise

Leading position based on expertise (graphic)

Market-leading positions – the customer’s first choice

  • By providing products and services that improve customers’ productivity and sustainability we ensure our market-leading positions and can maintain value-based pricing
  • Strategic and long-term relationships with our customers combined with a decentralized decision model enable us to adapt faster to current and future needs
  • About 4 percent of our annual revenues are spent on R&D to ensure a leading product offering
  • High barriers to entry, resulting from leading technology position, capital intensity and materials know-how

Solid financial position supports shift to growth

  • A solid balance sheet, good cashflow generation and a net cash position
  • Growth target of at least 5 percent through a business cycle to come from organic and acquired growth
  • CAPEX at <SEK 4 billion annually
  • Investments in product development, digitalization and automation
  • Acquisitions to broaden our value-creating offering, lead digitalization and automation and expand geographically in faster growing markets

Agile through cycle – strong financial performance

  • Proven resilience in economic downturns
  • Fast adoption through structural and volume cost-savings initiatives
  • Solid adjusted EBIT margin, excluding metal price effects, of 17.1 percent delivered in 2020, above trough margin target of 16.0 percent, despite a significant drop in volumes
  • Continuous work to improve cost structures and operational efficiency

Shareholders rewarded

Shareholders rewarded

Shareholders rewarded (bar chart)
  • Responsible and value-creating capital allocation
  • Target of 50 percent dividend pay-out ratio through a business cycle
  • 10-year average: 66 percent dividend ratio 3 percent yield
  • During 2020, the Board decided to continue the process for a separate listing of Sandvik Materials Technology1)

1) Pending shareholders’ approval in 2022 and provided that the circumstances are deemed right at the time.