Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Merger or Acquisition (December 2020)
17 slides from Sandvik Ab's merger presentation, December 2020
Slide 1: Sandvik to acquire underground safety solutions company DSI Underground
SANDVIK TO ACQUIRE UNDERGROUND SAFETY SOLUTIONS COMPANY DSI UNDERGROUND
Slide 2: Safety First
SAFETY FIRST Sandvik’s objective is zero harm to our people, the environment we work in, our customers and our suppliers. PROTECTIVE FIRST AID ALARM EQUIPMENT KIT EMERGENCY EMERGENCY ASSEMBLY NUMBER EXIT POINT PSYCHOLOGICAL HEALTH & SAFETY WELL-BEING 2
Slide 3: A Business Geared for Growth
A BUSINESS GEARED FOR GROWTH FORECASTED MARKET GROWTH 2019-2025, CAGR ~3% 2.5-3% ~2% >10% ≥5% Through an economic cycle organic and M&A SANDVIK MINING & SANDVIK ROCK SANDVIK MANUFACTURING & MACHINING ROCK SOLUTIONS PROCESSING SOLUTIONS SOLUTIONS SANDVIK MACHINING SANDVIK MANUFACTURING SOLUTIONS SOLU
Slide 4: Strengthening Our Position as World-Leader in Underground Mining
STRENGTHENING OUR POSITION AS WORLD-LEADER IN UNDERGROUND MINING ROCK EXTRACTION ROCK PROCESSING EXPLORE MATERIALS DRILL & BLAST CRUSHING GRINDING SEPARATION & PLAN HAULAGE SANDVIK ROCK SANDVIK MINING AND POTENTIAL PROCESSING ROCK SOLUTIONS (SMR) SOLUTIONS (SRP) EXPANSION 4
Slide 5: SMR Setting Up for Growth
SMR SETTING UP FOR GROWTH Focus on fast growing commodities Grow share in core Expand aftermarket offering Lead automation, digitalization and electrification Accelerate Mergers and Acquisitions Sandvik DS422i is a rock support drill specialized for cable-bolt installation in underground mines and t
Slide 6: DSI Underground
DSI UNDERGROUND SANDVIK P|
Slide 7: Underground Development
UNDERGROUND DEVELOPMENT Bolts, plates, bars Mesh Sheets DEVELOPMENT AND PRODUCTION DRILLING CHARGE, BLAST, VENTILATE MATERIAL LOADING WHAT IS GROUND SUPPORT? AND HAULING Ground support is mission-critical safety systems in mines and tunnels that keep GROUND SUPPORT rock stable and prevent potentiall
Slide 8: Towards a Full-Service Provider Underground
TOWARDS A FULL-SERVICE PROVIDER UNDERGROUND Drilling Charge, Blast, Ventilate Ground support installation Material loading and hauling CUSTOMER DEVELOPMENT ~20-25% ~25% ~30% ~20-25% CYCLE TIME* EXAMPLE DSI UNDERGROUND’s PRODUCTS SMR OFFERING BOLTS CHEMICALS CURRENT MAIN SCOPE Fu Friction, cable, inf
Slide 9: DSI Underground: #1 Ground Support Supplier
DSI UNDERGROUND: #1 GROUND SUPPORT SUPPLIER FULL YEAR 2020F SALES* EBIT MARGIN EMPLOYEES (incl. JV:s) PRODUCTION FACILITIES JOINT VENTURES COUNTRIES (incl. JV:s) 518 MEUR 12-13% ~2,000 22 4 70 SALES BY MARKET AREA COMPANY OVERVIEW SALES BY END MARKET AMERICAS • Leading supplier of ground support and
Slide 10: Close Proximity to Customers
CLOSE PROXIMITY TO CUSTOMERS DSI UNDERGROUND GEOGRAPHIC PRESENCE SUPPLY CHAIN • DSI Underground recognized by customers as having best in class service levels • Local presence gives high reliability and supply security • Relatively low share of products tied up on long transportation routes keep net
Slide 11: DSI Underground Is a Good Strategic Fit
DSI UNDERGROUND IS A GOOD STRATEGIC FIT Drive safety and productivity across the full underground mining cycle. Leverage COMPLEMENTARY 1 combination of equipment and consumables to improve customer safety and OFFERING productivity Leading profitability vs. peers. Stronger EBITDA margin and sales gro
Slide 12: SMR Vision and Strategic Focus Areas
SMR VISION AND STRATEGIC FOCUS AREAS To be the preferred solutions partner in our customers’ journey to performance leadership SAFE AND DELIVER SHAPE THE INDUSTRY AGILE EXECUTION WITH EVOLVE PORTFOLIO SUSTAINABLE CUSTOMER VALUE ECOSYSTEM EXCEPTIONAL PEOPLE AND PARTNERSHIPS GROUND SUPPORT DSI UNDERGR
Slide 13: Transaction Overview & Financial Impact
TRANSACTION OVERVIEW & FINANCIAL IMPACT
Slide 14: Transaction Overview
TRANSACTION OVERVIEW TRANSACTION • Enterprise value: 943 million EUR. CONSIDERATIONS • Sellers: Triton Partners. • Estimated closing: Mid-2021, subject to customary regulatory approvals. IMPACT ON KEY • Funding: Cash deal. No need to increase gross debt. METRICS • Group gearing by Q3 was 0.05 and ne
Slide 15: Summary
SUMMARY SANDVIK P|
Slide 16: Important Step in Our Growth Ambition
IMPORTANT STEP IN OUR GROWTH AMBITION Strong strategic Strengthens our Adding a solid world leading fit with a aftermarket position in complementary business underground offering mining 16
Slide 17: Questions & Answers
QUESTIONS & ANSWERS SANDVIK P|