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G33 Government grants

Sandvik has received various forms of government grants in countries where the Group operates of SEK 144 million (46) during 2023. The main part of the received amount of the grants in 2023 has been recognized as a reduced cost to which the grant is attributable to, as in 2022.

In 2023, 63 percent of the government grants were related to R&D projects and development costs. The remaining 37 percent were mainly related to personnel costs and energy grants. In 2022, the main part was related to R&D projects and development costs.

The majority of the grants have no unfulfilled conditions or contingencies attached to them.

§ Accounting principles

Government grants are recognized as deferred income in the balance sheet when there is reasonable assurance that the grant will be received, and that the entity will comply with the conditions attached to them. Grants are recognized in profit or loss for the year in the same way and over the same periods as the related costs that they are intended to compensate, on a systematic basis.

Grants related to assets are presented by deducting the grant from the carrying amount of the asset.