Sandvik as an investment

We continuously strive to enhance our value-creating offering through leading productivity and sustainable solutions to our customers. With 160 years of experience in advanced materials and applications know-how, we stay relevant by advancing the world through engineering, expanding our core competencies and adding new digital technologies.

In 2021 we made important progress in our shift to growth strategy, acquiring assets with a solid strategic rationale that will strengthen our positions going forward. 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

Graphic that illustrates how a combination of supply of software and hardware results in new solutions (graphic)

Leading position based on expertise

Circle that illustrates how R&D, leading offering, prefered choice, market share, price leadership and profitability are connected (graphic)

Shareholders rewarded

Bar and line chart that shows an increase of dividend in SEK and % for the years 2015-2021. No dividend 2019. (bar chart)

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 in 2021, for 2022 <SEK 5 billion
  • 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 EBITA margin of 19.1 percent. Solid adjusted EBIT margin, excluding metal price effects, of 17.8 percent delivered in 2021, above trough margin target of ≥16.0 percent
  • Continuous work to improve cost structures and operational efficiency

Shareholders rewarded

  • Responsible and value-creating capital allocation
  • Target of 50 percent dividend pay-out ratio through a business cycle
  • 10-year average:
    • 68 percent dividend ratio
    • 3.3 percent yield
  • During 2021, the Board of Directors confirmed their previous decision to proceed with preparations to distribute Sandvik Materials Technology, in the second or third quarter of 2022, subject to shareholders’ approval