Slides
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Capital Markets Day 2025 Sandvik Group Stefan Widing President and CEO
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Transformed to a stronger Sandvik 2 Strengthened market positions and offering, and leading in digital Leverage on strong Group platform and financial strength towards 2030 Successful strategy execution and delivered on ambitious targets Significant business portfolio transformation to enhance growth profile and resilience
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Successful strategy execution for higher growth and resilience Revenues divested or spun out (2017-24, BSEK) 30 Revenues acquired (2020-25 Q1, BSEK) 22 3
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Increased share of aftermarket, built leading digital platforms 4 Aftermarket/Recurring revenues (share of revenues 2019->2024) 31% 44% Digital offering (Revenues 2024, BSEK) 5 .1
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We have delivered on ambitious financial targets 5 Revenue growth, at fixed exchange rates, CAGR (2019-24) +7% Organic revenue growth, CAGR (2019-2024) +3 %
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6 A stronger Sandvik, advancing to 2030
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Updated Group structure as of January 1, 2026 Mining Rock Processing Machining Intelligent Manufacturing A global leading solutions provider with a holistic, innovative and integrated offering of equipment and tools, parts, services, automation and digital solutions towards the mining and infrastructure industries A leading supplier of equipment, service and technical solutions for processing rock and minerals in the mining and infrastructure industries A market-leading manufacturer of tools and tooling systems and solutions for advanced metal cutting that optimize machining operations such as turning, milling and drilling Provides digital manufacturing and software solutions, with an end-to-end agnostic offering that can automate and connect the component manufacturing value chain 7
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23 world-leading businesses – #1 or #2 market positions – Close customer relationships, know-how, and broad solution offering – Industrial technology leaders – Industry leading margins through value-based pricing and stringent cost focus – Decentralization and agile mind-set 8 divisions 23
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Decentralized operating model – Clear strategic priorities – Incentivized on targets for growth, profitability, and capital efficiency – P&L and Balance Sheet accountability – Collaboration where it makes sense 9
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10 The Sandvik Group provides a strong platform for our divisions to grow and scale their businesses globally through – financial strength – globally recognized brand – strong performance culture – large talent pool
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Confirming financial targets 7% 20−22% <1 .5 50% Revenue growth Adjusted EBITA range Financial net debt/EBITDA Dividend payout ratio Through a business cycle, organic and through acquisitions, at fixed exchange rates Through a business cycle Through a business cycle 11
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Value- creating strategy – Innovation (new innovation sales ratio) – Sustainable solutions (share of sales) – Profitability (Adj. EBITA margin range) – Capital efficiency (relative net working capital to sales) – Emissions reduction (science-based targets) – Health and safety (TRIFR) – People engagement (engagement index) – Digital offering (revenue) – Total revenue growth (organic and inorganic at fixed exchange rates) 12
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Innovation at core to drive organic growth 13 New Sales Ratio (products launched within 5 yrs) 24% R&D to revenues (2024) 4%
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Leading digital offering- continued high ambitions 14 Towards 2025 (Revenues, BSEK) 6.5 Advancing to 2030 (Revenues, BSEK) 13 Digital offering (Revenues 2019 – 2024, BSEK) <1 to >5 – Leading positions in digital in our industries – Productivity and sustainability gains – Leading in end-to-end solutions in mining – 20+ years of automation innovation in mining – Leading in CAM software and machining simulation & optimization
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In-organic growth priorities Value-creating bolt-on acquisitions in selected areas 15 Important regions for expansion: India, China, US Become clear leader in round tools Expanding in faster growing segments such as; aerospace, medical, defense, consumer electronics Digital solutions to complement existing platforms Niches in downstream mining, demolition and recycling Machining Intelligent Manufacturing Mining Rock ProcessingMachining
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– Delivered on our strategy and financial targets – Evolving the Sandvik portfolio – A growing industrial technology company – 23 world-leading divisions – Ambitious targets set towards 2030 – Value-accretive capital allocation 16 In summary
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Advancing to 2030
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Financial targets Cecilia Felton CFO
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Financial targets 7% 20−22% <1 .5 50% Revenue growth Adjusted EBITA margin range Financial net debt/EBITDA Dividend payout ratio Through a business cycle, organic and through acquisitions, at fixed exchange rates Through a business cycle Through a business cycle 19
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Strong focus on growth and creating a stronger Sandvik 20 Phase: 90 120 -30% -15% 0% 15% 30% 45% 0 BSEK Organic % Structure % Revenues R12, at fixed exchange rates Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 – Successful strategy execution with focus on profitable growth – Revenue growth, at fixed exchange rates, CAGR, 7%, 2019 to 2024 – Organic 3% – Acquired growth 4% – Resilient topline with higher share of recurring software revenues and aftermarket sales – Organic growth fueled by investing in innovation and new product launches – 46 acquisitions since 2020, adding SEK 22 billion of annual revenue, repositioning Sandvik – Higher structural growth areas – Solid digital business platforms – Higher share of aftermarket business Note: Continuing operations, excluding SMT, Other Operations and Mining Systems Downturn Accelerated downturn Recovery and growthGrowth Slow industrial cycle
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Industry leading margins and proven resilience 21 EBITA % financial target range BSEK 0 5 10 15 20 25 0 2 4 6 8 10 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Adj. EBITA Adj. EBITA % R12 % – Continuous efforts on cost optimization, solid execution on 2022 and 2024 saving programs with total run rate savings of SEK 2 billion – New restructuring initiatives announced in Machining – Significantly improved margin resilience – A more resilient topline – Greater cost flexibility through higher share of variable costs – Speed and agility through the power of our decentralized organization Note: Continuing operations, excluding SMT, Other Operations and Mining Systems +32% (2019 – 2024)
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Solid financial position – Solid balance sheet for growth and strategy execution – Financial net debt / R12 EBITDA at 1.07 at Q1 2025 – Going forward investments and acquisitions will be financed by generated cash flow -10 0 10 -20 30 40 50 20 60 1.8 0.0 -0.6 -0.3 0.3 0.6 0.9 1.2 1.5 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q1 2023 Q2 Q3 Q4 Q1 2024 Q3 Q3 Q4 Q1 2025 Q1 2021 Q2Q4 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q2 BSEK Ratio Financial net debt Net pension liability Leases Financial N.D. / R12 EBITDA 22
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Capital allocation that drives value creation – Strong cashflow supporting growth agenda – Capital allocation priorities – Capex – Dividend – Debt target – M&A – Share buy-backs – Balanced approach for allocating capital between the business areas – Each acquisition evaluated on its own merits and return – Good acquisition pipeline in all business areas Stabilization 2016-2020 Shift to Growth journey 2021- Acquisitions CAPEX Dividend Debt repayment M&A spend 2020 - 2025 Q1 Intelligent Manufacturing: CAD/CAM software and metrology including resellers Machining: Roll-up of companies with higher structural growth profile Mining: Mine planning and operations software, automation, ground support Rock Processing: Attractive niches in downstream mining (screens and feeders) and demolition and recycling 23
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Shareholders rewarded 24* Excluding the distribution of Alleima to shareholders SEK 0.00 2.00 4.00 6.00 8.00 2018 2019 2020 2021 2022* 2023 2024 43% 75% 41% 42% 43% 48% 4.25 2.00 4.50 4.75 5.00 5.50 5.75 Extra dividend Ordinary dividend % Payout ratio 5-year average payout ratio 49% 3-year average payout ratio 44% Distributed to shareholders Alle ima
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Delivering on our targets 7% 49% Revenue growth (7%) Adjusted EBITA margin range (20-22%) Financial net debt/EBITDA (<1.5) Dividend payout ratio (50%) Revenue growth, at fixed exchange rates, CAGR, 2019-2024 20. 0% 2023 Average 2020-2024 20. 0% 2022 19. 2% 2024 1 .2 2023 1 .3 2022 1 .2 2024 Distributed to shareholders Alle ima 25
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Mining Mats Eriksson President
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<2019 Outperforming targets 27 Revenue <40 BSEK Revenue growth at fixed exchange rates, CAGR 10% 2019 - 2024 Revenue ~65 BSEK Revenue growth, at fixed exchange rates, CAGR 11% ROCE (reported EBITA) 22.5% Adjusted EBITA margin 20.4% Aftermarket share 69% Achievements 2024
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Significant strategic achievements Strong position for the future – Automation and software end-to-end offering – Modular path to electrification – Proven surface platform in place – Invested in manufacturing and supply chain – Significant investments into R&D and innovation 28 Electrification Technology leader #1 Automation Largest installed fleet #1 Digitalization Full end-to-end offering #1 AUTOMINE®
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Profitability journey 29 – Adj. EBITA margin target range 20-22% – Dilution of c. 200 bps from DSI ground support – Normalized leverage of ~30% on volume changes – Good margin resilience – Increased aftermarket (58% – 72%, 2017-Q1 2025) – Recurring software revenues – Asset light assembly with outsourced production of components – High ROCE at 24.1% Adj. EBITA margin R12 2025 Q1 21.0% Revenue Adj. EBITA % R12 Revenue and Adj. EBITA margin development 0 BSEK % Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Revenue growth, CAGR 2019 – 2025 Q1 10% At fixed exchange rates ROCE R12 2025 Q1 24. 1% Based on reported EBITA 6 8 10 14 16 18 0 12 2 4 16 18 20 22 24 26 2 4 20.9 % 20.9 % 21.1 % 20.9 %20.5 % 20.4 % DSI acquisition 29
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Solid platform for future growth <2019 Revenue <40 BSEK Strategic focus Focus on core and efficiency 2019 - 2024 Revenue ~65 BSEK Strategic focus Shift to growth – organic and M&A 2025-2030 Adjusted EBITA margin range 20-22% Strategic focus Profitable growth Revenue growth, at fixed exchange rates, CAGR 8% 30
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Future demand driven by growing middle class and energy transition Shorter mine life with depleting ore grades Industry is challenged by shortage of people/skills Well positioned to support future industry demands 0 20 25 30 Mt 2015 2020 2025 2030 2035 Demand Base case -24% Copper supply vs demand (Existing assets) Avg. mine life and ore grades (Copper) Mining engineering students 0 30 40 50 0.0 0.2 0.4 0.6 0.8 Years % 2000 2010 2020 2030 -30.1% 2012 2014 2016 2018 2020 2022 0 300 400 Enrollment in the Colorado School of Mines -38% Source: Wood Mackenzie, Statistic Agency of Canadian Government 31 Ore grade (%) Avg. mine life (years)
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Lead the future of mining – 32 Sandvik can make it a reality today Safe & sustainable Reliable & productive Connected and fully autonomous Data, AI and analytics powered End-to-end optimization Electrified
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Lead the future of mining – 33 Bringing the capabilities from underground to surface Safe & sustainable Reliable & productive Connected and fully autonomous Data, AI and analytics powered End-to-end optimization Electrified
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Advance our leading positionStrategic growth areas Enabled by Strategy for continued profitable growth Being customers’ first productivity partner Future-proofing through performance excellence Our people leading the way Surface drilling solutions Automation & mining software Electrification Aftermarket Underground solutions 34
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35 Strong growth of resilient aftermarket business – Increased fleet and addressable market – Strong focus on skills and service technicians – Increased digital recurring revenues – Increased demand for advanced Ground Support – Differentiated Rock Tools with unique capabilities Aftermarket revenue growth and share of total revenue 62% 69% 2019 2024 Aftermarket revenue (BSEK and %) Achievements (2019- 2024) 22 BSEK 40 BSEK
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Our plan for continued aftermarket success Leverage our global relevance with strong local presence Continue focus on service technicians to drive uptime Increase recurring revenue through adoption and offering expansion Innovate with industry- leading capabilities Leverage installed equipment base for growth High single digit Revenue growth, at fixed exchange rates, CAGR, 2024-2030 36
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Customer’s first productivity partner for underground solutions 37 Installed fleet >45% Revenue growth with large contractors and miners > 60% Achievements (2019-2024) Value chain presence Mine Planning Drilling & Blasting Ground Support Loading & Hauling Crushing & Screening Cutting Aftermarket solutions
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Our plan to advance our leadership in underground 38 Grow with mine owners and excel our partnerships with contractors Excel our technology and service leadership Modular portfolio for various customer needs Win extensive replacement cycle and greenfield opportunities Differentiate through innovative, integrated and holistic solution High single digit Revenue growth, at fixed exchange rates, CAGR, 2024-2030
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Continued progress in mining electrification Modular vehicle platform 392023 2024 +30% Installed underground BEV development Diesel Diesel-Electric Hybrid Battery Trolley Alternate Fuels AutoMineTM My Sandvik Productivity Remote Monitoring Service Electric Driveline
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Our digital business is global, leading, growing and profitable 2020 2022 2024 2026 2028 2030 2000-2019 Organically developed strong core 2019-2024 M&A expansion to leading digital platform – >30% revenue CAGR – ~1000 employees – Profitable since years back and accretive to Sandvik Towards 2030 – Double digit growth outlook – Continued strong profitability development – Strong leverage for Sandvik equipment and aftermarket Autonomy Since 2000: AutoMine organic growth Safety 2019: Newtrax acquisition Software 2022: Deswik acquisition Software 2023: Polymathian acquisition Autonomy 2024: UFR acquisition 2000
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Software is a strong growth business for Sandvik – Focus on mining process instead of equipment – Products for Mine Planning, Scheduling and Optimization – Subscription based business model (high ARR) – Market leader in underground mining, expansion to surface mining – Strong market pull for end-to-end, integrated platforms – Uniquely positioned for ongoing transition to AI-based applications and business 42
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Sandvik has a market leading automation offering – Comprehensive product range for full autonomy – 1000+ autonomous units delivered and running – Scalable offering – Expansion ongoing to non-Sandvik equipment AutoMine® Codelco El Teniente – Accumulated AutoMine® orders > 1 BSEK – Fleet of 48 fully automated loaders and trucks – Enabled access to 1 million tonnes of new ore 43
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Surface platform built for expansion – Extensive surface platform in place – Surface test pit fostering customer co-innovation – Recent wins of strategic surface deals – Installed fleet market share growth – Strong future aftermarket opportunity (>3x equipment revenue) Equipment revenue 2X Installed fleet > 40% Achievements (2019 - 2024) 45
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Our plan to become first choice for surface drilling solutions Grow infrastructure in selected areas Expand automation and software solutions across value chain Grow with current customer base Expand surface offering with optimal aftermarket Double digits Revenue growth, at fixed exchange rates, CAGR, 2024-2030 46
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64 100 Towards 100 BSEK – Strong revenue growth of 8% CAGR over the business cycle – Advance leading position in underground and aftermarket – Strategic growth areas 1. Surface drilling solutions 2. Automation & mining software and technology 3. Electrification 47 BSEK 2024 baseline Organic growth base M&A 2030 +8%
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Summary 48 At fixed exchange rates Revenue growth, CAGR 8% Adjusted EBITA margin range 20-22% Strategic growth areas Double-digit growth Strong long-term market fundamentals Global market leading positions Innovative and holistic solutions Customers first productivity partner Safety and sustainability is in our core Industry leading margins with high ROCE
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Q&A
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Rock Processing Richard Harris President
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Solid strategy execution 2019-2024 – Revenue growth, at fixed exchange rates, CAGR 6% – Expanded in attractive niches in mining – Increased aftermarket share of revenue – Wider product offering and geographic presence to deliver eco-efficient rock processing in mining BSEK ~11 CAGR ~18 BSEK 9% 2021 2022 – 2024 2030 Focus on structure and efficiency Expand core offering and market presence BSEK ~7 .6 Increase focus on mining and demolition & recycling *Signed not closed * 52
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Successful journey with Schenck Process Mining of 150 MEUR in revenue synergies realized 60 of revenue in Mining 34% › 56% of revenue in Aftermarket 52% › 61% 53
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Profitability journey – Adjusted EBITA margin target range of 17-19% – Increase share of aftermarket to 65-70% – Infrastructure recovery – EBITA margin in mining segment higher than infrastructure due to share of aftermarket sales – Normalized leverage of ~25% on volume change – Demonstrated margin resilience during infrastructure downturn – ROCE at 12.3% - will improve with Schenck synergy realization, infrastructure recovery and NWC normalization 54 Revenue growth, CAGR 2019 – 2025 Q1 6% 1 Excluding currency Adj. EBITA margin R12 2025 Q1 15. 0% ROCE R12 2025 Q1 12. 3% 2 ROCE excluding amortization of surplus values %BSEK Revenue Revenue and Adj. EBITA margin development Adj. EBITA % R12 0 1 2 3 4 4 0 2 10 12 14 18 20 16 16.2 % Q4 2019 16.1 % Q4 2020 16.6 % Q4 2021 16.0 % 14.5 % Q4 2023 14.6 % Q4 2024 Q4 2022 At fixed exchange rates Based on reported EBITA
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New targets 2024-2030 55 Revenue CAGR 2024-2030 9% Aftermarket share of value, 2025-2030 65- 70% Adjusted EBITA 17- 19%
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Expand in attractive segments – Strengthen market leading positions in rock processing in mining – Realize untapped potential to improve sustainable business for mines – Expand geographically and strengthen our offering in demolition and recycling through acquisitions 56 2024 2030 Demolition & Recycling Quarrying & Aggregates Mining & Minerals Share of revenue development and CAGR (SRP) SRP growth (CAGR) (Market growth) ~11 BSEK ~ 18 BSEK 5x (~5-6%) In line (~3%) 3x (~3%)
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Continue to expand in mining – Strengthened position in mining with full crushing and screening offering – More deals to compete on – Increase aftermarket capture
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Leverage on superior crusher technology 58 Market recognition and doubled order intake of large 800i crushers validates our winning strategy The mining sector’s consumption of the world’s total energy ~6% Number of mines with significant growth opportunities > 600 Our concept offers energy savings at customers’ sites with 10- 20%
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Solid position to expand in aftermarket – Increased installed equipment base – Value-adding service offering – Acquisitions in attractive niches with high aftermarket content 59
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We add value to the process The expertise Optimal supply Digital offerings 60
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Advancing in screening media Globally scalable – Gradually increasing sales and service resources – Increasing screening media manufacturing capacity close to customers – Sandvik screens are fitted with Sandvik media when delivered – Digital solutions increase process and service efficiency 61 “By utilizing Sandvik screening media, we have increased our screen shutdown intervals from 6 to 12 weeks allowing us to continuously achieve our production targets. Sandvik service and support was a key element to ensure a gradual and sustainable improvement” Brett McFadgen Executive General Manager Operations at Pilbara Minerals
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62 Digital solutions creating value
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Demolition and recycling – well-positioned for growth – Favourable trends for higher growth – Advancing our market position to accelerate growth – Organic and acquisitive growth 63
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Global demolition & recycling market set for 5-6% annual growth 64 Recycled material ConstructionSite Preparation Reforming & Repurposing Separation & Classification Crushing & Screening Secondary Demolition Primary Demolition Material Strip-out North America Large market with high growth Europe Largest market with steady development Australia High growth market
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Capturing growth opportunities across the value chain 65 – Solid inhouse production of demolition tools along with a hammer offering – Updated portfolio covers essentials in the value chain, from material strip-out to site preparation – Well-aligned with identified growth opportunities Cutter-Crusher
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11 2030 growth target Growth journey supported by both organic growth and acquisitions within mining, aftermarket and demolition and recycling 66 BSEK 2024 baseline Organic growth base M&A 2030 ~18+9%
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Summary – Leveraging on stronger position and offering in mining – Large untapped potential in mining to address in- efficiencies and sustainability – Expand in aftermarket – Continue to expand in niches in downstream mining and in demolition and recycling with higher growth Revenue CAGR 2024-2030 ~9% Aftermarket share of value 2025-2030 65- 70% Adjusted EBITA margin range % 17- 19 At fixed exchange rates 67
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Q&A
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Machining and Intelligent Manufacturing Nadine Crauwels President Machining Mattias Nilsson President Intelligent Manufacturing 69
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71 “My vision is to create a technology network of technology companies and there Sandvik is a great partner and a great start” Andreas Schick Chief Operating Officer at Schaeffler
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A unique market position No other cutting tool or software provider combines these capabilities With a unique position in manufacturing, Sandvik is shaping the industry's future 72 Sandvik’s competitive edge 80+ years of manufacturing expertise Market leading cutting tool brands driving customer productivity and innovation Proprietary data advantage Cutting tool, material, and machine data – to power next-generation solutions Leading software solutions Across the component manufacturing chain, enabling digital threads and customer optimization Enterprise customers Small and mid-size customers
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Sandvik has built market leading positions with multiple entry points across the customer value chain Component design Process and operation planning Preparation and logistics Component shaping Verification #1 cutting tool provider globally, with strongest position in premium Market leading positions #2 CAM software provider based on end-user payments #2 agnostic metrology software provider globally 73
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Manufacturers’ needs and priorities 74 Customer needs Increased automation | Efficiency | Service and support Production challenges Complex components | Skills gap | Evolving customer demands OEMs / large customers Technology teams | Strategic partners | Platform vs. best-of-breed Contract manufacturers / SMEs Single-site | Owner-driven | Turn-key preference
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Most customers still have a low level of automation 75Source: Sandvik and EY study with 350 component manufacturers in Europe and North America 68% 31% 1% Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Manual processes Assisted systems Semi-automated Highly automated Automated with robots ‘Lights-out’ production
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80% expect to increase automation by 2030 – AI will speed up this move 76Source: Sandvik and EY study with 350 component manufacturers in Europe and North America 26% (68%) 58% (31%) 16% (1%) Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Manual processes Assisted systems Semi-automated Highly automated Automated with robots ‘Lights-out’ production
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The manufacturing workflows of today are changing 77 Design CAM Simulation Tool selection Machining Verification Optimization Optimization Optimization Optimization Optimization Optimization Examples of feedback loops Fragmented workflows with limited integration File-based data transfer Some initial feed- back loops, but limited automation Optimization happens at individual steps, not across the full workflow Workflow efficiency depends heavily on human expertise rather than system intelligence A typical design to component workflow today
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Automated data flows, fueled by Sandvik proprietary knowledge Design CAM Simulation Tool selection Machining Verification Digital twin SANDVIK: Proprietary data – cutting tools, material, machine combined with the application knowledge Integrated feedback loops Proprietary AI models Workflow optimization Tomorrow: digital thread enabling seamless flow of data through the process 78
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Benefits for Sandvik customers – and for us 79 Sandvik specific benefitsGeneral customer benefits Unique, competitive solution offering Increased cutting tool sales and customer stickiness Enablement of new business models Multiple value chain entry points and a flexible ecosystem approach Part of industry we serve gives unique customer understanding Reliable machining knowledge available digitally and through our experts Faster time to market through optimized workflows Reduced manual tasks with higher efficiency and quality Data-driven insights to enhance process security and performance
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Cross-sell complementing offer to broad base 80 Component design Process and operation planning Preparation and logistics Component shaping Verification 100,000 direct machining customers 400,000 software seats globally 10% increased tools sales Sandvik Coromant 7% of Vericut’s new software sales + recurring and expansion revenue Cross-selling through acquired channel partners Tooling recommendation and purchasing directly in CAM Lead generation program Enterprise customer program
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Synergies driving above market growth Offer unique solutions to enable customers automation journey Maximize cross-selling opportunities across our wide customer base Strengthen our role as a trusted enterprise solution partner Machining 15% of 2024-2030 organic growth, CAGR Intelligent manufacturing 25% of 2024-2030 organic growth, CAGR Machining + Intelligent manufacturing 5% Revenue growth, at fixed exchange rates, CAGR 2024-2030 81
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Intelligent Manufacturing Mattias Nilsson President
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A leading manufacturing software platform, well- positioned for growth Revenues BSEK (Q1 LTM 2025 proforma) 3.1 Recurring software revenue 60% Share of software > 95% Adj. EBITA margin (software business, Q1 LTM 2025) > 25% Adj. EBITA margin (Q1 LTM 2025) 22% ROCE (on reported EBITA, Q1 LTM 2025) 8% 83
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Leading positions in attractive markets SEK Bn 30 2025-2030 6-7% SEK Bn 18 2025-2030 6% Market shares Market size Market growth Sandvik position Production & operation engineering Computer-Aided Manufacturing Simulation, Verification, Optimization CAM end-user payments 2024 estimated – Top 2 overall position – Leading provider to small- and-midsize machine shops – North America, strongest presence Verification 3D metrology software Estimated 3D metrology software revenue – Top 2 agnostic software provider – Strong position with OEMs and large enterprises 15% Hex San Aut Das Sie Ope Sol TebSandvik 3% Hex Zei Inn San Mit Ni Far RenSandvik Est Hardware incumbents Agnostic software providers 84
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We have grown faster than the market CAM market: End-user payments MUSD (2024 estimated) Hexagon Sandvik Autodesk Dassault Siemens OpenMind SolidCAM Tebis TopSolid PTC OtherSandvik CAGR 2021-2024E 6% 8% 7% 3% 4% 7% 14% 4% 9% 1% 6% – CIM data estimates that Sandvik will have the highest growth among the top 5 CAM providers 85
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Mastercam case study: Growth above market at accretive margins Mastercam financial development – Constant currencies Key activities Revenues (proforma) Adjusted EBITA margin, % Organic revenue Acquired revenue Adj. EBITA margin 0.0 0.3 0.6 0.9 1.2 1.5 Q3 2021 LTM 2024 0% 10% 20% 30% 40% 50% Q3 2021 LTM 2024Sep 2021 -Oct 2020 Mar 2025 -Apr 2024 Sep 2021 -Oct 2020 Mar 2025 -Apr 2024 CAGR, % 16% 7% High-single digit increase 2021 Mastercam acquired in September 2021 2022 Next generation toolpath investment 2023 Product integrations with Sandvik Coromant 2024 Channel partner acquisition program 2025 - Product releases from Sandvik synergies: – Next generation toolpath platform – Agent-based AI Copilot – Integration for CAM automation – Tooling purchasing in CAM 86
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Lead generation synergies A Vericut case study 3.6 4 0.9 8.5 Sandvik Coromant leads Recurring and add-ons Expansion revenue Total revenue USD M > Total revenue from Sandvik Coromant leads (licence, service and first year maintenance) Recurring revenue (maintenance) and add-on sales Expansion revenue (e.g new sites) Total revenue of Vericut new software sales from Sandvik Coromant leads 7% 87
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Targets 88 The strategy execution from 2025 to 2030 Revenue growth, at fixed exchange rates, CAGR 15% [7.5 BSEK] Recurring revenue 80% Adj. EBITA 25%
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Customer needs driving our growth strategy 1. Component complexity 2. Skills gap 89 67% 75% Prefer to buy turnkey/bundled solutions Prefer physical meetings when purchasing software 44% Prefers better access to technical expertise to resolve urgent issues
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Desired future position End-to-end solution provider Leading solutions with seamless integration Leader in our main markets for small- and medium sized customers Preferred end-to-end partner to selected enterprise customers 1. 2. 3. 90
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Desired future position End-to-end solution provider Leading solutions with seamless integration 1. 91
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Addressing the customer automation need 93 Beyond: Closed loop manufacturing So far: Product integrations Until 2030: Digital thread & feedback loops
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First to market with AI in CAM 94 So far: Manufacturing Copilots Mid-term: Digitize machining intelligence
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Investing in the future to accelerate growth Next generation Metrologic hub Innovation hub in IndiaNext generation toolpath kernel Continued focus on AI 95
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Desired future position End-to-end solution provider Leader in our main markets for small- and medium sized customers 2. 96
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Customer needs – Fewer partners – Leading solutions – Broader know-how – Close to them 98
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Mastercam case study: additional value creation plan 99 Step-wise plan to value creation Potential impact 01 Channel partner acquisitions in US – Direct access to 50% of customer base – Software growth at attractive valuations (~4-6x EBITDA) 250 MSEK in net new software revenue added, from 250 MSEK to 500 MSEK 02 Drive sales of other Intelligent Manufacturing solutions through acquired channel ~200 MSEK estimated additional annual software spend potential from Mastercam direct customers 03 Explore cross-selling cutting tool with Machining ~3,000 MSEK estimated annual cutting tool spend of Mastercam direct customers 04 Scale value creation plan globally Not quantified
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Desired future position End-to-end solution provider Preferred end-to-end partner to selected enterprise customers 3. 100
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Strategic partnership program approach – Scale strategic partnership program – Leverage Sandvik’s unique value proposition and market reach – Agnostic, strong and adaptable software offering – Invest in next-gen technical platforms and seamless integrations – Additional revenue generation from addressing new customer opportunities 101
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Summary Growth strategy – Capitalize our unique position with manufacturing expertise and software capabilities – Expand share of wallet through SME market leadership – Scale enterprise partner program – Over half of total revenue growth will be organic – Complemented by bolt-on acquisitions with high returns and strategic acquisitions strengthening our offering further – Positive ROCE development ahead – Organic growth, accretive reseller roll-ups and margin improvement 103 Revenue growth, CAGR 15% Recurring revenue 80% Adj. EBITA margin 25% Revenue (BSEK) 7 .5 At fixed exchange rates
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Machining Nadine Crauwels President Machining
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A trusted market leader Number 1 in inserts 4% of sales invested in R&D. Every 5 th product sold is newer than five years Tied # 1 in round tools (13%*) Repositioning through value driven M&A 16 acquisitions since 2020 with above market growth, adding 5 BSEK of annual revenue Digitalizing our customers – strong solutions partner and synergies with Intelligent Manufacturing Focused on value creation through M&A *Market share estimate 2024 105
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Cutting tools is a growing market 40 60 80 100 120 140 160 180 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2030 World GDP - Real Cutting Tool Market - Value Industrial Production Indicator CAGR 2011-30 Real GDP 2.7% Industrial Production 2.3% Cutting Tools Value 1.0% CAGR 2024-30Forecast2011 = 100 3.0% 2.6% 1.5% 2.4% 1.7% -0.1% –GDP mix shift towards services –Less machining content in manufactured goods –Enhanced cutting tool performance 2.7% 2.4% 1.2% CAGR 2019-24CAGR 2011-19 106
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Machining’s historical organic growth impacted by China underexposure and Russia exit Market 2011-2024 Market under-exposed, primarily China Market share gain (US & Europe) SMS organic growth (11’-24’) w/o Russia impact Exit Russia SMS organic growth (11’-24’) M&A Total Growth CAGR (11’-24’) 0.9% -0.6% 0.4% 0.8% -0.4% 0.3% 1.0% 1.3% Revenue CAGR, fixed currency Source: Sandvik financial data 107
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Fueled by acquisitions, accelerating our growth above the pace of the market CAGR 2011- 2019 2019- 2024 2024- 2030 Machining total 1.4% 1.0% 3% Market 1.5% -0.1% 1.2% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 +1.4% +1.3% +2.0% +1.0% +3% Cutting tools market (value) indexed to 2011 Machining Business area Machining revenue, fixed currency Source: Machining 108
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Portfolio being repositioned towards higher growth – Tied #1 in round tools market share – Recovered market share in Asia – Full capability (powder to insert) in Americas – Selective M&A strategy targeting growth areas Product mix Regional mix Source: Machining, revenue including non-cutting tool such as powder 27% 19% 54% 2019 27% 24% 49% 2024 Others Round tools Inserts 100% 100% 27% 20% 53% 2019 29% 22% 48% 2024 RoW Americas Asia Europe 100% 100% % of revenue for total Machining, fixed currency 109
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Strategic repositioning and synergies drive growth Revenue CAGR Source: Machining Finance and Machining BI analysis – Market recovery first part of the period vs long-term trend – Stronger position in growth regions and -segments – Synergies with Intelligent Manufacturing – M&A focus on growth and margins Long-term market growth (2011-30) Market recovery Machining repositioning and Intelligent Manufacturing synergies Machining organic growth (2024-2030) M&A Machining revenue growth (2024-2030) 1.0% 0.2% 0.3% 1.5% 1.5-2.0% 3.0% 110
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Profitability journey – Industry leading EBITA margin – Proven margin resilience – Strong cash flow generation and a cash flow margin average of 20% since 2019 – Normalized leverage of ~40% on volume change – Good ROCE at 14.8% given the macro-economic developments Adj. EBITA margin R12 2025 Q1 20.2% Revenue Adj. EBITA % R12 Revenue and Adj. EBITA margin development 0 2 4 6 8 10 12 14 16 18 20 22 24 26 2 4 6 8 10 12 0 BSEK % 23.3 % Q4 2019 19.7 % Q4 2020 Q4 2021 22.6 % Q4 2022 22.0 % Q4 2023 20.2 % Q4 2024 17.8 % 23.6 % 19.3 % 16.0 % 20.9 % 22.7 % FOCF % of revenue R12 * Indicative prior to split of Machining and Intelligent Manufacturing Revenue growth, CAGR 2019 – 2025 Q1 ~1% At fixed exchange rates ROCE R12 2025 Q1 14. 8% Based on reported EBITA 111
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Areas for growth and value creation – Sandvik Machining Solutions 112 Leading positions in growth areas Leading innovations Value creator with partners and Intelligent Manufacturing Value-creating M&A roll-up strategy Leveraging the Machining portfolio At fixed exchange rates Revenue growth, CAGR 3% Adjusted EBITA margin range 22- 24%
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Strong local presence in growth regions – above market growth expected Market share 23% Americas Growth estimate Market 1. 3% Machining 2x Market share 14% India Growth estimate Market 5. 5% Machining 2x Market share 12% Asia excl. India Growth estimate Market 1. 7% Machining 3x 113
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Stronger positions in key growth segments – Aging population – Improved standard of living – Increased healthcare spending – Machining: continued focus on medical segment / solutions selling Round tools Aerospace Medical Defense Automotive EV – Asia-Pacific leading demand – Shift to more fuel-efficient aircrafts – Machining: leveraging strong customer relations, in growing geographies – Increasingly complex components and durable materials – Machining: focus is on custom products and solutions together with customers – Sustainability and regulations driving EV demand – Machining: launching from low base into strong growth in auto aluminium – Expanding defense capacity – Modernization of weaponry and military vehicles – Machining: focus on high growth markets (US, Europe, India) 82 Market size (BSEK) 22 Market size (BSEK) 7 Market size (BSEK) 6 Market size (BSEK) 4 Market size (BSEK) Market Machining CAGR Market 19-24 Machining 19-24 Market 24-30 1% 2% Market 19-24 Machining 19-24 Market 24-30 Market 19-24 Machining 19-24 Market 24-30 Market 19-24 Machining 19-24 Market 24-30 Market 19-24 Machining 19-24 Market 24-30 3% 4% 2% 5%5-6% 46% 22% -2% 5% * Source: Oxford Economics, S&P Global Mobility, International Monetary Fund, Machining
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116 “We need to make sure that we are at our best when developing, and that’s why we work with Sandvik Coromant on a day-to-day basis.” Anthony Puichafray General Manager at Héroux Devtek UK
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Industry leader in innovation CoroDrill DE10 Sandvik Coromant’s new exchangeable-tip drill for high-volume hole making across all industries. Great potential to gain market share and has had a successful sales start towards key competition. Launched March 2025 Groov·tec GD A new grooving system from Walter. Optimized for dynamic turning programmed with CAD/CAM software like Mastercam. Launched Q4 2024 Digital boring head An easy-to-use digital reader from Seco enabling data communication for enhanced functions increasing customer value through automation. Launched Q2 2024 Toolhive Tool Management Toolhive empowers manufacturing through smart data integration. This new cloud-based tool management software from Machining, seamlessly connects all essential data points into one user-friendly platform. Launches May 2025 117 4% of revenue in R&D, New Sales Ratio of 20%
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Knowledge applied – Cross-selling with Intelligent Manufacturing - 15% of the Machining organic growth – Supporting customers on their digitalization and automation journeys – Increased tool sales and stickiness with customers – Sustainability data a future differentiator – Increasing revenues from digital services and new business models 118 – through structured product and process data Bundling offers with internal brands And with external partners (not exhaustive)
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120 “Seco has evolved to be a strategic engineering partner” Eámonn Nestor Senior Vice President Operations at Smith+Nephew
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Value creation through M&A – Experienced serial acquirer – Good access to deal flow – Deep transaction and industry experience – Structured acquisition and integration approach – Dedicated business owner / integration teams 121 Percent of Enterprise Value invested 2020-2024 17% 83% High-growth/High-margin* High-growth/Mid-margin* 16 acquisitions adding SEK 5 B in annualized revenues * High-growth: >4% revenue growth, CAGR; High-margin: >18% EBITA, mid-margin <18% EBITA
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M&A Priorities to 2030 122 Returns Pay disciplined multiples. Focus on targets with strong return on capital and cash generation Value creation Drive top-line synergies and operational efficiencies from acquisitions Attractive markets Continue to increase exposure to higher growth, healthy margin segments
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Leveraging possibilities of the Machining portfolio 123 Strong, resilient and sustainable supply chains - Tungsten supply from Wolfram - Reconditioning and recycling programs Operations optimization - Strengthened regional presence, reducing overall footprint - Increase efficiency, drive down working capital - SEK 3 Bn in cost over 2025-2030 - by end of period 1 Bn of annual run rate savings
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Summary Attractive profit growth and ROCE development Industry leading EBITA margins with demonstrated resilience Strong cash flow margin Value creating M&A roll- ups that generate attractive returns and drives repositioning towards higher growth segments Organic growth above market growth with good operational leverage At fixed exchange rates Revenue growth, CAGR 3% Adjusted EBITA margin range 22- 24% 124
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Q&A
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Advancing to 2030 126 Strengthened market positions and offering, and leading in digital Leverage on strong Group platform and financial strength towards 2030 Successful strategy execution and delivered on ambitious targets Significant business portfolio transformation to enhance growth profile and resilience
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High ambitions, advancing to 2030 Mining Rock Processing Machining Intelligent Manufacturing Revenue growth target, CAGR 2025-2030 8% Adjusted EBITA margin range 20-22% Revenue growth target, CAGR 2025-2030 9% Adjusted EBITA margin range 17-19% Revenue growth target, CAGR 2025-2030 3% Adjusted EBITA margin range 22-24% Revenue growth target, CAGR 2025-2030 15% Adjusted EBITA margin range 25% Revenue growth target, CAGR 2025-2030 7% Adjusted EBITA margin range 20 -22% Financial net debt/EBITDA < 1 .5 Dividend payout ratio 50% 127