Relevant GRI Indicators

Group total

Order intake and revenue

The underlying demand for Sandvik’s products and solutions has been solid throughout 2022. Continued high investments by mining customers has resulted in record order levels and consequently strong order backlogs. Softening demand within infrastructure in particular in Europe was noted post the Russian war against Ukraine, as a consequence of increasing interest rates and energy prices. The geopolitical and macroeconomic situation has led to turbulences with logistics and component shortages, as well as rising cost inflation. The supply chain situation eased somewhat in the second half of the year. Sandvik has during the year taken various measures to manage these challenges.

On August 31, Sandvik distributed Alleima (former business area Sandvik Materials Technology) to the shareholders of Sandvik. The result is included up to August 30, 2022. Sandvik’s order intake amounted to SEK 134,019 million (108,900), and revenues were SEK 123,453 million (99,110), implying a book-to-bill ratio of 109 percent (110).

Earnings and return

Sandvik’s EBITA increased to SEK 22,471 million (19,463), corresponding to 18.2 percent (19.6) of revenues. The adjusted EBITA increased to SEK 24,470 (19,364) and the adjusted EBITA margin increased to 19.8 percent (19.5) compared to the previous year. Changes in foreign exchange rates affected adjusted EBITA positively by SEK 3,711 million (–898) compared with the preceding year. Net financial items amounted to SEK 531 million (–194). The result before taxes for the Group was SEK 16,983 million (18,451), and SEK 17,738 million (16,818) for continuing operations. Income tax had a total impact of SEK –5,758 million (–3,967) on earnings, corresponding to 26.9 percent (21.5) of profit before taxes. Profit for the year attributable to owners of the Parent Company was SEK 11,212 million (14,461). Basic earnings per share for the Group amounted to SEK 8.95 (11.53) and SEK 10.25 (10.41) for continuing operations. Return on capital employed was 17 percent (19) and return on equity was 14 percent (20).

Earnings and return







EBITA margin, %



Adjusted EBITA1), MSEK



Adjusted EBITA margin1), %



Profit before tax, MSEK



Profit for the period



Return on capital employed, %



Return on total equity, %



Earnings per share, basic, SEK



Earnings per share, diluted, SEK



Items affecting comparability2)






Whereof continuing operations






EBITA margin, %



Adjusted EBITA1), MSEK



Adjusted EBITA margin1), %



Profit before tax, MSEK



Profit for the period



Earnings per share, diluted, SEK



Adjusted earnings per share, diluted, SEK



Items affecting comparability2)




Adjusted for items affecting comparability.


2021 it is mainly related to a capital gain from divestment of property, partial provision releases, closure of pension plans and M&A costs. For 2022 it is mainly related to the wind-down of operations in Russia, structural measures to support resilience ambitions and M&A costs.

Working capital

Relative net working capital for the year was 26 percent (24) of revenues. In absolute terms net working capital amounted to SEK 33,361 million (26,841) at the end of the year. In terms of volume, net working capital increased by SEK 6,520 million compared with the preceding year. Changed currency rates increased net working capital by SEK 3,830 million compared with the preceding year. The structural effect from acquisitions and divestments decreased working capital by SEK –6,879 million.

Capital expenditure

Group total



Investments in non-current assets, MSEK



% of revenue



% of scheduled depreciation



Cash flow and financing

Cash flow from operating activities decreased to SEK 10,465 million (13,177). Net cash flow after investing activities was SEK –9,839 million (–13,014). At the end of the year, cash and cash equivalents amounted to SEK 10,489 million (13,585) and free operating cash flow was SEK 11,985 million (14,538).

Financial net debt was SEK 36,466 million (16,848) and the financial net debt/EBITDA ratio was 1.32 (0.68).

At the end of 2022, Sandvik had unutilized credit facilities totalling SEK 16,676 million equivalent, which includes a revolving credit-facility of SEK 11,000 million, and other guaranteed bank-facilities totalling SEK 5,676 million equivalent. The remaining duration for the Group’s outstanding bonds is currently 4.6 years. At year-end 2022, Sandvik Group holds a long-term credit-rating of A- according to the international credit-rating agency Standard & Poor’s and likewise A–2 for short-term loans.

Quarterly trend of revenue and profit before tax




Profit before tax

Net margin, %


First quarter





Second quarter





Third quarter





Fourth quarter










First quarter





Second quarter





Third quarter





Fourth quarter





Equity at year-end amounted to SEK 81,270 million (77,332), or SEK 64.8 per share (61.6). The equity ratio was 46 percent (50).


Investments in non-current assets for the full year 2022 amounted to SEK 4,530 million (3,578) corresponding to 132 percent of scheduled depreciation. Proceeds from the sale of companies and shares, net of cash, amounted to SEK –34 million (423). Investments in internally generated intangible assets were SEK 680 million (431).

Acquisitions during the year

Acquisition of companies and shares, net of cash, amounted to SEK –15,184 million (–23,578 ). Completed acquisitions during the year are as follows;

On April 1, Sandvik Mining and Rock Solutions completed the acquisition of Deswik, an Australia-based company.

On June 17, Sandvik Mining and Rock Solutions completed the acquisition of Finland-based company Akkurate.

On July 1, Sandvik Manufacturing and Machining Solutions completed the acquisition of the Spain-based company Preziss.

On July 14, Sandvik Manufacturing and Machining Solutions completed the acquisition of the assets in the US based company Peterson Tool Company.

On August 1, Sandvik Manufacturing and Machining Solutions completed the acquisition of the assets in the US based company Balax.

On August 8, Sandvik Manufacturing and Machining Solutions completed the acquisition of Sphinx Tools, a Swiss-based company.

On September 1, Sandvik Manufacturing and Machining Solutions completed the acquisition of Frezite, a Portugal-based company.

On October 31, Sandvik Rock Processing Solutions completed the acquisition of SP Mining, the mining related business of the Australian-based company Schenck Process Group.

Financial position




Cash flow from operating activities, MSEK



Cash flow after investing activities, MSEK



Cash and cash equivalents as of December 31, MSEK



Net debt as of December 31, MSEK



Net financial items, MSEK



Equity ratio, %



Financial net debt/EBITDA



Equity as of December 31, MSEK



Equity per share as of December 31, SEK



Distribution to owners

At the Annual General Meeting on April 27, 2022, the formal decision to distribute all shares in the Parent Company of the business area Sandvik Materials Technology (SMT) to the shareholders of Sandvik AB was taken. The distribution was completed August 31, 2022, when SMT was listed on Nasdaq Stockholm under the name Alleima AB.

Impact on the financial reporting due to the war in Ukraine

Sandvik paused its business activities in Russia on February 28, due to Russia’s war in Ukraine. An extensive process to analyze the situation and eventually wind-down the business in Russia was started. At the end of December 2022, a total of SEK 1.5 billion in non-recurring charges had been recorded related to the wind-down, of which SEK 1 billion was related to a write-down and SEK 0.5 billion related to provision. The wind-down process is ongoing and no more charges are expected. Total remaining assets related to Russia, excluding cash, amounts to approximately SEK 22 million on December 31, 2022. In 2021, about 3.6 percent of Sandvik Group revenues was from Russian customers.

Parent Company1)

The Parent Company’s revenues for 2022 amounted to SEK 13,139 million (12,244) and the operating result was SEK 4,906 million (4,328). The result from shares in Group companies of SEK 11,166 million (2,205) for the year consists mainly of contributions and dividends offset by costs related to the distribution of Alleima. Interest-bearing liabilities, less cash and cash equivalents and interest-bearing assets, amounted to SEK 16,147 million (21,688). The Parent Company’s total assets increased by SEK 6,438 million, from SEK 76,430 million to SEK 82,868 million. Investments in non-current assets amounted to SEK 320 million (1,070).

The number of employees in the Parent Company and the subsidiaries operating on commission for Sandvik AB as of December 31, 2022 was 3,720 (3,703).


The Board of Directors proposes a dividend of SEK 5.00 per share (4.75). The dividend proposal represents 42 percent (42) of adjusted earning per share, dilutive for the Sandvik Group in total.

Dividend 5.00 per share


x number of shares




Profit carried forward


Total, SEK



The average number of employees amounted to 42,318 (40,636), of which 20 percent (20) were women. The employee turnover rate was 12 percent (11). Wages, salaries and other remunerations for the year totaled SEK 25,467 million (21,194).

Guidelines for the remuneration of senior executives

The below remuneration guidelines were approved by the Annual General Meeting 2020 and apply until the Annual General Meeting 2024, unless any changes are proposed. The Board of Directors does not propose any new guidelines.

Scope of the guidelines

These guidelines encompass the President and other members of the Group Executive Management. The guidelines do not apply to any remuneration decided on or approved by the General Meeting.

The guidelines’ promotion of the Company’s business strategy, long-term interests and sustainability

A prerequisite for the successful implementation of the Company’s business strategy and safeguarding of its long-term interests, including its sustainability, is that the Company is able to recruit and retain qualified personnel. To this end, it is necessary that the Company offers competitive remuneration. These guidelines enable the Company to offer senior executives a competitive total remuneration. For more information regarding the Company’s business and sustainability strategy, please see the Company’s website:

Types of remuneration

The total remuneration package should be based on market terms, be competitive and reflect the individual’s performance and responsibilities as well as the Group’s earnings trend. The remuneration may consist of fixed salary, variable remuneration, pension benefits and other benefits.

Fixed salary

The purpose of the fixed salary is to attract and retain senior executives with the right competence for the respective positions. The salary level should be determined by comparing the salary to similarly complex positions within a defined peer group.

Variable remuneration – Variable share related remuneration

The Company may offer long-term share related or share price related remuneration. Such programs are adopted by the General Meeting and are therefore not covered by these guidelines. There are currently ongoing long-term share related incentive programs for senior executives and key employees in the Group. For more information on these programs, see the Company’s website:

–Variable cash remuneration

The Company may offer short or long-term variable cash remuneration. The fulfillment of objectives for awarding such remuneration shall be measured over a period of one to three years. Such remuneration may amount to not more than 75 percent of the fixed annual salary per year.

Variable cash remuneration shall be conditional upon the fulfillment of defined and measurable criteria. These criteria shall aim at promoting the Company’s business strategy and performance as well as its long-term interests, including its sustainability. At the beginning of each year the Board of Directors and the Remuneration Committee shall establish the criteria, including key performance indicators (KPIs) and the target ranges, deemed relevant for the upcoming measurement period. The criteria may be financial, with at least three KPIs, and non-financial, and shall always be related to business performance. At least 80 percent of the variable cash remuneration shall be linked to the financial criteria. The President and Group Function heads shall be measured on Group level KPIs and the Business Area Presidents shall be measured on both Group level and Business Area level KPIs. The established KPIs shall be presented on the Company’s website: The extent to which the criteria for awarding variable cash remuneration have been fulfilled shall be determined when the measurement period has ended and will be published in the Report on Evaluation of Remuneration the following year. For financial criteria, the evaluation shall be based on the latest financial information made public by the Company.

–Special arrangements

In specific cases, the Company may offer one-off remuneration provided that such remuneration is only made on an individual basis, for the purpose of recruiting or retaining senior executives, does not exceed an amount corresponding to 100 percent of the individual’s fixed annual salary and maximum variable cash remuneration, and is not paid more than once per year and individual.

–Right to withhold or reclaim remuneration

Terms and conditions for variable remuneration shall be designed so that the Board of Directors (i) has the right to limit or refrain from payment of variable remuneration if exceptional economic circumstances prevail and such a measure is considered reasonable, and (ii) has the right to withhold or reclaim variable remuneration paid to an executive based on results that afterwards were found to have been misstated because of wrongdoing or malpractice (so called malus and clawback).

Pension benefits

For the President, the pension benefit shall be defined contribution and the pension premiums shall amount to not more than 37.5 percent of the fixed annual salary. For the other senior executives, pension benefits shall be defined contribution and amount to not more than 55 percent of the fixed annual salary, in accordance with the Swedish ITP1 pension scheme. Exceptions to this main rule may be decided on for senior executives with existing defined benefit schemes provided that the cost of such schemes does not exceed the above mentioned cap.

Other benefits

Other benefits may include, for example, life insurance, medical insurance and company car benefit. Such benefits may amount to not more than 5 percent of the fixed annual salary. For senior executives in need of double accommodation, paid accommodation, etc. may be added in line with Sandvik’s regulations and such benefits may amount to not more than 20 percent of the fixed annual salary.

Termination of employment

Severance pay may be paid when employment is terminated by Sandvik. The President and the other senior executives may have a period of notice of not more than 12 months, in combination with severance pay corresponding to 6–12 months fixed salary. When employment is terminated by the senior executive, the notice period may not exceed six months and no severance pay shall be paid.

In case a senior executive is not entitled to severance pay, but is covered by a non-compete undertaking, the senior executive may instead be compensated for such a non-compete undertaking. Any remuneration paid as compensation for a non-compete undertaking shall not exceed 60 percent of the fixed salary at the time of notice of termination of the employment and shall not be paid for a longer period than 18 months. Fixed salary during the notice period together with any compensation for the non-compete undertaking shall not exceed an amount equivalent to the senior executive’s fixed salary for 24 months.

Consideration of remuneration to the Company’s employees

When preparing the proposal for these guidelines, the employment conditions applied within the Company as a whole have been used as a benchmark, following the principle that the remuneration packages of all Sandvik employees should be based on the complexity of the position, performance and market practice. In general, the same combination of remuneration components such as fixed salary, variable remuneration, pension and other benefits are offered within Sandvik.

The decision-making process to determine, review and implement the guidelines

The Board of Directors has established a Remuneration Committee. The Committee’s tasks include preparing the Board of Directors’ decision to propose guidelines for senior executive remuneration. The Board of Directors shall prepare a proposal for guidelines at least every fourth year and submit it to the General Meeting. The guidelines shall be in force until new guidelines are adopted by the General Meeting. The Remuneration Committee shall also monitor and evaluate programs for variable remuneration for the executive management, the application of the guidelines for senior executive remuneration as well as the current remuneration structures and compensation levels in the Company. The members of the Remuneration Committee are independent of the Company and its executive management. The President and the other senior executives do not participate in the Board of Directors’ processing of and resolutions regarding remuneration-related matters to the extent that they are affected by such matters.

Decisions on remuneration to the President are taken by the Board of Directors, based on proposals from the Remuneration Committee, and decisions on remuneration to the other senior executives are taken by the Remuneration Committee.

Adjustments to local rules

Remuneration under employments subject to other rules than Swedish may be duly adjusted to comply with mandatory rules or established local practice, taking into account, to the extent possible, the overall purpose of these guidelines.

Derogation from the guidelines

The Board of Directors may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is special cause for the derogation and a derogation is necessary to serve the Company’s long-term interests, including its sustainability, or to ensure the Company’s financial viability. As set out above, the Remuneration Committee’s tasks include preparing the Board of Directors’ resolutions in remuneration-related matters. This includes any resolutions to derogate from the guidelines.

For information concerning the current remuneration of senior executives, including ongoing long-term incentive programs, refer to note G4.

Research and development (R&D)

Each business area is responsible for its own R&D activities. Focus areas are machining materials and process development, additive manufacturing, powder metallurgy, electrification and digital solutions.

Sandvik has a portfolio of approximately 7,079 (6,227) active patents. In 2022, 725 (763) new patents were granted. Investments in R&D were SEK 4,471 million (3,651), corresponding to 4.0 percent (4.3) of revenues. The number of employees in R&D, including Quality Assurance, was 3,011 (2,651).


Sandvik is a multinational group with many intercompany transactions. The OECD has issued guidelines for transfer pricing of cross-border transactions in multinational groups. Sandvik adheres to these guidelines and also to the local legislation of each country to ensure that a correct pricing model is deployed and that a correct amount of tax is paid in each country. Sandvik monitors the OECD’s tax reform work and the EU initiatives on tax transparency carefully and observes these standards as and when enacted. Sandvik strives to have good relations with our stakeholders, such as tax authorities, non-governmental organizations and investors.

Sandvik has initiated cooperation with tax authorities in several countries. We are convinced that an open discussion and cooperation with tax authorities around the globe will help us to reduce uncertainty about the taxes we are obliged to pay. We contribute to the local communities and countries in which we operate in the form of, for example, taxes and employment opportunities. In 2022, the Group paid SEK 5,262 million (4,154) in income taxes globally. Income tax comprises just a portion of all taxes paid by Sandvik worldwide. In addition, we pay social security contributions, environmental and energy taxes, property taxes, etc. Furthermore, Sandvik collects and pays taxes at the request of governments and authorities, including indirect taxes and withholding taxes.


In Sweden, Sandvik conducts licensed operations at nine sites according to the Swedish Environmental Code. All of them hold a requisite environmental permit and none was exceeded during the year. Notifications of changes in operations were submitted for Seco Tools in Fagersta and Sandvik Machining Solutions in Sandviken. The sites in Sandviken operate under a permit belonging to Alleima, former Sandvik Materials Technology and Sandvik will apply for new permits in 2023.

Statutory sustainability report

Sandvik has, in accordance with the Annual Accounts Act, prepared a statutory sustainability report, approved for issue by the Board of Directors and the President and CEO. The Statutory Sustainability Report and Sustainable Business Report comprise Value-creating offerings, Sustainability Targets, Sustainability shift, Sustainability governance and Non-financial notes.

Events after the end of the period

On January 18, 2023, Sandvik signed a EUR 500 million loan agreement with the European Investment Bank (EIB). The loan has a seven-year tenor and will support Sandvik’s R&D investment plans until 2025.

On February 1, Sandvik announced the completion of the acquisition of Polymathian Industrial Mathematics (“Polymathian”), an Australia-based provider of advanced mine optimization software and services.

On February 1, Sandvik announced the acquisition of 95 percent of the shares in the Irish-based company PMT Premier Machine Tools Limited (“PMT”).

On February 11, Sandvik announced that Christophe Sut, President of business area segment Sandvik Manufacturing Solutions, has decided to leave Sandvik. He will leave Sandvik as of August 11, 2023.

On February 21. Sandvik announced the appointment of Sofia Sirvell as Chief Digital Officer (CDO) for the Sandvik Group and new member of the Group Executive Management as of March 1, 2023. Additionally, Jessica Alm, Executive Vice President and Head of Group Communications and Sustainability, has decided to leave Sandvik. She has been in her current position and a member of the Group Executive Management since 2013. She will leave Sandvik and the Group Executive Management no later than August, 2023.


1) The Parent Company includes subsidiaries operating on commission for Sandvik AB. These are presented in note P12.