Sandvik : Quarterly Presentation

INTERIM REPORT SECOND QUARTER 2021

SUMMARY Q2

STRONG EXECUTION IN A HIGH-DEMAND ENVIRONMENT

• Order intake growth of 43% year on year
• Strong underlying demand in both the mining and construction segments with order intake well above pre-covid levels
• Robust demand in automotive and general engineering with positive signs of improvement in the aerospace and energy segments
• Revenues grew 22% on the back of strong order backlogs and despite supply chain challenges

SOLID EARNINGS PERFORMANCE

• Adjusted operating profit margin at 19.1% (14.0)
• R12 month adjusted EBIT margin excl. metal prices 18.7% (17.0)
• Permanent savings amounted to SEK 190 M, while reversal of temporary savings had a negative impact of SEK -765 M year on year

CONTINUING THE SHIFT TO GROWTH

• Record order month for battery electric mining vehicles with connected Battery as a Service agreements
• The rock processing digital service, SAM by Sandvik, launched in April
• Closed the acquisition of DSI Underground and announced five acquisitions during and after the quarter

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STEPPING UP THE DIGITAL SHIFT

With DWFritz Automation, Sandvik will take a leading position in high- speed, non-contact,in-line metrology and precision automation

A leading company with an end-to- end portfolio in CAD/CAM software for manufacturing industries.

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SANDVIK MANUFACTURING SOLUTIONS ON TRACK TO MEET THE TARGET

+1.3*

BSEK

Target: 4 BSEK

700-800

MSEK

20192025

*Based on revenues 2020

STAYING AHEAD THROUGH INNOVATION

SAM BY SANDVIK

• SAM by Sandvik, launched in April, is our rock processing digital service
• Designed specifically for team members responsible for running daily operations
• It will give customers direct access to:
• • data, analytics
  • communications
  • e-commerce
  • inspection tools
  • custom on-site reporting
  • information and predictions based on our AI modelling for customers connected equipment

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					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	Q2 Y/Y							Demand trend
	revenue FY20	order intake							Sequential Q/Q
EUROPE	35%	+63%
NORTH AMERICA	22%	+49%
ASIA	20%	+34%
AFRICA/MIDDLE EAST	9%	+15%
AUSTRALIA	9%	+1%
SOUTH AMERICA	5%	+88%
		Demand trend
	Sequential Q/Q

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