Development in business areas

On January 1, 2021, a new business area, Sandvik Rock Processing Solutions, was established, formed out of the former Crushing and Screening division. The remaining operations within Sandvik Mining and Rock Technology changed their name to Sandvik Mining and Rock Solutions. During 2021 Sandvik’s operations consisted of four business areas: Sandvik Mining and Rock Solutions, Sandvik Rock Processing Solutions, Sandvik Manufacturing and Machining Solutions, and Sandvik Materials Technology.

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Order intake by business area

MSEK

2020

2021

Change, %

Change, %¹⁾

Sandvik Mining and Rock Solutions²⁾

34,832

47,460

Sandvik Rock Processing Solutions²⁾

6,571

8,524

Sandvik Manufacturing and Machining Solutions

32,677

37,680

Sandvik Materials Technology

11,910

15,234

Other operations

297

n/m

Continuing operations

86,287

108,898

Discontinued operations

Group total

86,288

108,900

1)	Change compared with the preceding year, at fixed exchange rates for comparable units.
2)	Last years figures have been restated due to the new business area structure as of January 1, 2021.

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Revenue by business area

MSEK

2020

2021

Change, %

Change, %¹⁾

Sandvik Mining and Rock Solutions²⁾

33,572

41,409

Sandvik Rock Processing Solutions²⁾

6,459

7,610

Sandvik Manufacturing and Machining Solutions

32,477

36,681

Sandvik Materials Technology

13,598

13,405

–1

–4

Other operations

297

n/m

Continuing operations

86,404

99,105

Discontinued operations

–14

Group total

86,409

99,110

1)	Change compared with the preceding year, at fixed exchange rates for comparable units.
2)	Last years figures have been restated due to the new business area structure as of January 1, 2021.

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Operating profit by business area

MSEK

2020

% of revenue

2021

% of revenue

Change, %

Change, %¹⁾

Sandvik Mining and Rock Solutions²⁾

6,400

8,220

Sandvik Rock Processing Solutions²⁾

990

1,255

Sandvik Manufacturing and Machining Solutions

4,606

8,058

Sandvik Materials Technology

492

1,379

180

Other operations

–578

n/m

Group activities

–694

n/m

–257

n/m

Continuing operations

11,216

18,654

Discontinued operations

–32

n/m

–10

n/m

Group total

11,184

18,644

1)	Change compared with the preceding year, at fixed exchange rates for comparable units adjusted for items affecting comparability.
2)	Last years figures have been restated due to the new business area structure as of January 1, 2021.
n/m = non meaningful.

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Sandvik Mining and Rock Solutions

Sandvik Mining and Rock Solutions is a leading supplier of equipment and tools, service and technical solutions for the mining industry and rock excavation within the infrastructure industry. Order intake for the business area amounted to SEK 47,460 million (34,832), an increase of 29 percent at fixed exchange rates for comparable units. Revenue totaled SEK 41,409 million (33,572), an increase of 16 percent at fixed exchange rates for comparable units. The EBIT margin was 19.9 percent (19.1) of revenues and the adjusted EBIT margin was 19.9 percent (20.5) of revenues. The items affecting comparability of SEK –6 million (–85) was primarily additional expenses for a provision taken in 2020.

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Financial overview¹⁾

MSEK

2019

2020

2021

Order intake

36,717

34,832

47,460

Revenue

37,366

33,572

41,409

Adjusted EBITA²⁾

7,821

7,018

8,659

Adjusted EBITA margin²⁾, %

20.9

EBIT

7,493

6,400

8,220

EBIT margin, %

20.1

19.1

19.9

Adjusted EBIT²⁾

7,714

6,885

8,227

Adjusted EBIT margin²⁾, %

20.6

20.5

19.9

Return on capital employed, %

34.0

29.2

31.2

Number of employees³⁾

12,452

12,442

15,574

Items affecting comparability⁴⁾

–220

–485

–6

1)	Figures from preceding years have been restated due to the new business area structure as of January 1, 2021.
2)	Adjusted for items affecting comparability.
3)	Full-time equivalent.
4)	Primarily related to savings measures during 2019–2020.

Sandvik Rock Processing Solutions

A leading supplier of equipment, service and technical solutions for processing rock and minerals in the mining and infrastructure industries. Order intake for the business area amounted to SEK 8,524 million (6,571), an increase of 32 percent at fixed exchange rates for comparable units. Revenue totaled SEK 7,610 million (6,459), an increase of 19 percent at fixed exchange rates for comparable units. The EBIT margin was 16.5 percent (15.3) of revenues and the adjusted EBIT margin was 16.5 percent (16.1) of revenues. The items affecting comparability was SEK 0 million (–48).

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Financial overview¹⁾

MSEK

2019

2020

2021

Order intake

7,661

6,571

8,524

Revenue

7,411

6,459

7,610

Adjusted EBITA²⁾

1,197

1,038

1,255

Adjusted EBITA margin²⁾, %

16.2

16.1

16.5

EBIT

1,109

990

1,255

EBIT margin, %

15.0

15.3

16.5

Adjusted EBIT²⁾

1,197

1,038

1,255

Adjusted EBIT margin²⁾, %

16.2

16.1

16.5

Return on capital employed, %

24.3

21.9

28.7

Number of employees³⁾

1,777

1,736

2,091

Items affecting comparability⁴⁾

–88

–48

1)	Figures from preceding years have been restated due to the new business area structure as of January 1, 2021.
2)	Adjusted for items affecting comparability.
3)	Full-time equivalent.
4)	Primarily related to savings measures during 2019–2020.

Sandvik Manufacturing and Machining Solutions

Sandvik Manufacturing and Machining Solutions is a market-leading manufacturer of tools and tooling systems for advanced metal cutting, expanding into digital manufacturing and software solutions, as well as disruptive technologies like additive manufacturing and in-line metrology. Order intake for the business area amounted to SEK 37,680 million (32,677), an increase of 16 percent at fixed exchange rates for comparable units. Revenue totaled SEK 36,681 million (32,477), an increase of 14 percent at fixed exchange rates for comparable units. The EBIT margin was 22.0 percent (14.2) of revenues and the adjusted EBIT margin was 21.3 percent (18.8) of revenues. The items affecting comparability of SEK 255 million (–1,494 ) were mainly related to a capital gain from a property divestment and partial reversals of restructuring reserves.

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Financial overview

MSEK

2019

2020

2021

Order intake

41,163

32,677

37,680

Revenue

41,123

32,477

36,681

Adjusted EBITA¹⁾

9,493

6,281

8,183

Adjusted EBITA margin¹⁾, %

23.1

19.3

22.3

EBIT

8,380

4,606

8,058

EBIT margin, %

20.4

14.2

22.0

Adjusted EBIT¹⁾

9,310

6,100

7,803

Adjusted EBIT margin¹⁾, %

22.6

18.8

21.3

Return on capital employed, %

25.9

14.6

21.6

Number of employees²⁾

18,453

17,301

20,435

Items affecting comparability³⁾

–930

–1,494

255

1)	Adjusted for items affecting comparability.
2)	Full-time equivalent.
3)	Related to long-term savings measures during 2019–2020 and for 2021 mainly capital gain from a property divestment.

Sandvik Materials Technology

Sandvik Materials Technology is a leading developer and manufacturer of advanced stainless steels, powder-based alloys and special alloys for the most demanding industries. Order intake for the business area amounted to SEK 15,234 million (11,910), an increase of 25 percent at fixed exchange rates for comparable units. Revenue totaled SEK 13,405 million (13,598), down –4 percent at fixed exchange rates for comparable units. The EBIT margin was 10.3 percent (3.6) of revenues and the adjusted EBIT margin was 11.5 percent (7.6) of revenues. The items affecting comparability of SEK –164 million (–540) were primarily related to the internal separation of Sandvik Materials Technology, offset by partial provision releases of structural and volume related savings measures taken in 2020.

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Financial overview

MSEK

2019

2020

2021

Order intake

16,475

11,910

15,234

Revenue

15,279

13,598

13,405

Adjusted EBITA¹⁾

1,787

1,032

1,548

Adjusted EBITA margin¹⁾, %

11.7

7.6

11.6

EBIT

1,444

492

1,379

EBIT margin, %

9.4

3.6

10.3

Adjusted EBIT¹⁾

1,787

1,032

1,543

Adjusted EBIT margin¹⁾, %

11.7

7.6

11.5

Return on capital employed, %

11.0

3.9

11.3

Number of employees²⁾

5,726

5,084

5,465

Items affecting comparability³⁾

–343

–540

–164

1)	Adjusted for items affecting comparability.
2)	Full-time equivalent.
3)	Related to savings measures and the internal separation of Sandvik Materials Technology.