Sandvik : Mining and Rock Solutions

SANDVIK MINING AND ROCK SOLUTIONS SANDVIK CAPITAL MARKETS DAY 2022

HENRIK AGER

PRESIDENT MINING AND ROCK SOLUTION

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SANDVIK MINING AND ROCK SOLUTIONS

REVENUES	ADJ. EBITA MARGIN	EMPLOYEES
~41bn SEK	21.1%	~16,000

CUSTOMER SEGMENTS

Gold

Electrification metals¹

Other2

DIVISIONS

SANDVIK MINING AND ROCK SOLUTIONS

MECHANICAL		LOADING
CUTTING		& HAULING
DIGITAL MINING		PARTS
TECHNOLOGIES		& SERVICES
ROTARY		ROCK
DRILLING		TOOLS
UNDERGROUND		SURFACE
DRILLING		DRILLING
GROUND
SUPPORT

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PRODUCT OFFERINGS

Aftermarket

Equipment

Mining

Infrastructure

Bulk

• Electrification Metals: Nickel, Copper, Zink, Lithium, Cobalt
  2 Other: Diamonds, other metals, other minerals

GEOGRAPHY

AMERICAS

~30%

EMEA

~30%

ASIA PACIFIC

~40%

DEMAND DRIVERS OF GROWTH IN MINING

GROWING GLOBAL

MIDDLE CLASS

GLOBAL MIDDLE CLASS

NUMBER OF BILLIONS

+4.0%

3.7

2.5

1.7

2010

2020

2030

DIGITAL AND SUSTAINABILITY

SHIFTS

IDENTIFIED DRIVERS

• High demand for automated solutions
• Increased focus on digitalization
• Rapid demand growth for electrified equipment
• Gradual shift underground

HIGH DEMAND OF

ELECTRIFICATION METALS

EXPECTED GROWTH RATES

2021-2025

Nickel5.3%

Copper4.8%

Zinc1.9%

Lithium & Cobalt	18.1%

UNDERLYING MINING PRODUCTION GROWTH OF 3-4% PER YEAR EXPECTED UNTIL 2025

Source: PEW Research Center, United Nations, Brookings Institute.

Note: Excludes impact from Covid Pandemic.

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5 STRATEGIC SHIFTS FOR SMR

FOCUS ON HIGH GROWTH UPSTREAM HARD ROCK

Target growth in gold and electrification metals

SHAPE THE SUSTAINABLE UNDERGROUND MINE OF THE FUTURE

Lead development of underground sustainability and productivity solutions in electrification, automation, digitalization

TAKE LEADING POSITION IN SURFACE DRILLING

Take leading position by 2030 in surface drilling

BECOME CUSTOMER

1ST PERFORMANCE PARTNER

Build Customer 1st partnerships through performance-based commercial offerings and superior basic and advanced services

BUILD HIGH PERFORMING, AGILE ORGANIZATION

Safe, sustainable and agile operations is our number one priority

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WE MAKE THE SHIFT

DIGITAL SHIFT

• Acquisition of leading mine planning company Deswik
• Automation's largest deal ever, 254 MSEK AutoMine® deal with Codelco
• Newtrax's largest deal ever with Sibanye-Stillwater for a total value of 155 MSEK

SUSTAINABILITY SHIFT

• Largest active underground Battery Electric Vehicle (BEV) mining fleet in the world
• Launching the largest-capacity battery truck for underground mining, TH665B
• Up to 50% reduction in fuel consumption with Top Hammer XL surface drill
• 25-30%lower GHG emissions in 2021 vs 2020, with higher production output

SHIFT TO GROWTH

REVENUE

7 BSEK

FTE

2000

REVENUE

0.6 BSEK

FTE

258

FTE

24

SHIFT TO GROWTH IN SURFACE DRILLING

• +60%1 CAGR Order intake for Boom Surface Drilling Equipment
• Launch of the new Pantera DP1600i and DR410i
• Key reference cases established in ROTARY across the globe

1 CAGR from 2020-2021 for Boom Surface Drilling Equipment.

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