INTERIM REPORT FOURTH QUARTER 2020

SUMMARY Q4

SHIFTING TO GROWTH

  • First quarter with positive order intake (excl. major orders) since Q1 2019
  • Record order intake noted in SMRT
  • Improved sequential demand in SMM driven by automotive
  • Good development in medical, industrial heating and consumer segments in SMT
  • Announced intention to acquire DSI Underground, expected to close mid-2021

MARGINS AT RECORD LEVELS

  • Adjusted operating profit at 20.1% (19.1)
  • R12 month adjusted EBIT margin excl. metal prices 17.1%
  • Strong support from previously announced savings programs and reduced spend of SEK 920 M

STRONG BALANCE SHEET

  • Cash-flowof SEK 5.9 B driving net gearing to a low 0.04
  • Three acquisitions closed during the quarter
  • The Board of directors proposes an ordinary dividend of SEK 4.50 per share (0) and an extra dividend of SEK 2.00

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Q4 LAUNCH - GC4425 AND GC4415

PAIRED UP FOR PRODUCTIVE STEEL TURNING

  • Second generation Inveio® coating technology delivers market-leading performance in steel turning
  • New substrates, a unique combination of good toughness and resistance against plastic deformation, offer a reliable performance
  • New post-treatment enhances performance in intermittent cutting operations, avoiding any sudden breakages
  • Increased tool life by an average of 25%, delivering more pieces per edge, every single time

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Y/Y UNDERLYING DEMAND TREND

MARKET

DEVELOPMENT

% of group

Mining

Engineering

Automotive

Energy

Construction

Aerospace

revenue 2020

40%

23%

11%

10%

8%

5%

% of group

Q4 Y/Y

revenue 2020

order intake

EUROPE

35%

-2%

NORTH AMERICA

22% -23%

Demand trend

Sequential Q/Q

ASIA

20%

+4%

AFRICA/MIDDLE EAST

9%

+26%

AUSTRALIA

9%

+4%

SOUTH AMERICA

5%

+24%

Demand trend

Sequential Q/Q

4

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Sandvik AB published this content on 21 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2021 12:37:01 UTC