INTERIM REPORT FIRST QUARTER 2021

SUMMARY Q1

POSITIVE MOMENTUM AND BROAD-BASED IMPROVEMENT

  • Strong order intake growth of +12% year on year
  • Positive momentum in both the mining and construction segments with record-high order intake level
  • Continued improvement in short-cycle segments driven by automotive and general engineering
  • Demand in the aerospace and energy segments remained low, although some positive signs noted in the energy segment

STRONG EARNINGS PERFORMANCE AND OPERATIONAL EFFICENCY

  • Significantly stronger adjusted operating profit margin at 19.2% (15.8)
  • R12 month adjusted EBIT margin excl. metal prices 17.6% (17.9)
  • Earnings supported by continued operational efficiency and reduced spend of SEK 550 M

ORGANIZATIONAL COMMITMENT TO MAKE THE SHIFT

  • Sandvik Mining and Rock Solutions and Sandvik Rock Processing Solutions reported as two separate business areas
  • New company purpose and refined strategy to make the shift launched in Q1

2

A REFINED STRATEGY TO MAKE THE SHIFT

CREATING

VALUE

Q1 LAUNCH -TOP HAMMER XL

NEW GROUND BREAKING DRILLING SYSTEM

  • Fully optimized top hammer system for large hole size drilling in surface mining. Increases the application area of top hammer into larger hole diameters
  • Serves customers with the best solutions order to maximize customers' productivity with a strong focus on safety and sustainability
  • Offers a faster, more fuel-efficient and more cost-effective way to drill holes
  • The components of the system - a new drill rig, rock drill and rock tools - are all optimized to work together seamlessly for exceptional drilling results

4

Y/Y UNDERLYING DEMAND TREND

MARKET

DEVELOPMENT

revenue 2020

Mining

Engineering

Automotive

Energy

Construction

Aerospace

% of group

40%

23%

11%

10%

8%

5%

% of group

Q1 Y/Y

Demand trend

revenue FY20

order intake

Sequential Q/Q

EUROPE

35%

-1%

NORTH AMERICA

22%

+5%

ASIA

20%

+26%

AFRICA/MIDDLE EAST

9%

+29%

AUSTRALIA

9%

+38%

SOUTH AMERICA

5%

+27%

Demand trend

Sequential Q/Q

5

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Sandvik AB published this content on 20 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2021 09:48:03 UTC.