Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Investor Presentation (July 2013)
24 slides from Sandvik Ab's investor presentation, Jul 19, 2013
Slide 1: Sandvik Investor Presentation
Sandvik Investor Presentation
Slide 2: What do we do? What are we? Who are we?
What do we do? We manufacture advanced special alloys and ceramic materials, industrial tools and mining equipment. We work in close cooperation with our customers and we invest heavily in research and development. What are we? Who are we? World leading products, Our corporate culture is We are a wo
Slide 3: Heritage
Heritage Founded 1862 in Sandviken, Sweden Göran Fredrik Göransson redesigned the Bessemer furnace to mass- produce steel A breakthrough and an innovation started the company 150 years ago First stainless steel Seamless tubes are conveyor belts are supplied to the new manufactured. Sandvik introduce
Slide 4: Business idea and Vision
Business idea Vision Sandvik shall develop, manufacture and market Industries worldwide need to highly processed products, that contribute to constantly improve their improving the productivity and profitability of our productivity. Sandvik makes customers. this possible. Operations are primarily co
Slide 5: Sandvik's strength factors
Sandvik’s strength factors Proven track record in premium segments Technology leadership in product markets High entry barriers, by vertically integrated business model Value selling part of corporate culture Unique product offering Pricing power Strong customer relations and strong market position
Slide 6: Financial highlights
Financial highlights Full year 2012 MSEK 100 000 50% • Invoicing 98,529 MSEK 90 000 45% 80 000 40% • EBIT 13,490 MSEK, 13.7% 70 000 35% • ROCE 19.8% 60 000 50 000 30% 25% • Employees 48,742 40 000 20% 30 000 15% 20 000 10% 10 000 5% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20
Slide 7: Strategy
Strategy One Sandvik to be number one Sandvik provides world class performance in operations as well as in shareholder and customer value creation. • Ambition – be number one in our areas of technology • Speed – shorter time to market with new products • Focus – focus on technology areas with growth
Slide 8: Financial targets
Financial targets Average annual growth 8% Return on capital employed 25% Net debt/equity ratio <0.8 Dividend payout percentage 50% of earnings per share 8 Sandvik Investor Presentation 2012
Slide 9: Markets and customer segments
Markets and customer segments Consumer related 3% Sales 2012, share of Group total Customer segments Other 4% Aerospace 4% 34% 18% Energy 9% Europe Asia Mining 40% 18% 11% Automotive 10% North America Australia 10% 9% Construction 11% Africa South America General engineering 19% Change (p/v) compare
Slide 10: Sandvik – Business Areas
Sandvik – Business Areas Sandvik Group Sandvik Sandvik Sandvik Sandvik Sandvik Mining Machining Materials Construction Venture Solutions Technology 10% 5% 7% 8% 38% 8% 42% 16% 29% 43% Equipment, tools, service Holds a clear global Industry-leading provider The world’s widest range Unique customer of
Slide 11: Different focus for each Business Area
Different focus for each Business Area Profitability 30% • Sandvik Mining: Improve performance and Machining Solutions maintain growth. • Sandvik Machining Solutions: Accelerate growth. Individual • Sandvik Materials Technology: Turnaround Venture the business to reach significantly higher profitabi
Slide 12: Opportunities for Sandvik's continued growth
Opportunities for Sandvik’s continued growth Emerging Increased Shorter markets a Wealth/ Increased product life stronger global Demographic energy Industrial cycles at force shift consumption innovation customers 12 Sandvik Investor Presentation 2012
Slide 13: Sandvik Mining
38% Share of Group’s total invoicing 2012 Sandvik Mining Sandvik Mining Offering Areas Mechanical Cutting Rock Tools Underground Load and Hauling Crushing and screening Business concept • ”The Safest mining supplier” • Premium brand • Direct sales Drilling Exploration Customer Services Mining System
Slide 14: Mining demand drivers and industry trends
Mining demand drivers Invoicing Sales distribution Mineral Mining capex, metal and mineral prices and extraction 2012 2012 exposureDiamond & Other levels. Europe 2% 9% Australia Mining Coals & 23% North Minerals America Customer Systems Base 22% 19% Mining industry trends 13% Services Metals 26% 33%
Slide 15: Sandvik Machining Solutions
Share of Group’s total invoicing 2012 29% Sandvik Machining Sandvik Machining Solutions Product Areas Sandvik Coromant Seco Tools Walter Dormer Solutions Business concept • Productivity services • World-class logistics to support JIT (Just In Time) supply Premium brands Mid-market brands • Use of a
Slide 16: Machining Solutions demand drivers
Machining Solutions demand drivers End customer segments Invoicing 2012 Australia • Primary metals consumption leading to global industrial Mining 2% 1% production (automotive, aerospace, energy applications etc.) Asia Aero- 20% space Africa/Middle Metal cutting industry trends 11% East 1% • Develop
Slide 17: Sandvik Materials Technology
Share of Group’s total invoicing 2012 16% Sandvik Materials Sandvik Materials Technology Product Areas Wire and Heating Technology Primary Products Tube Strip Technology Business concept • Product innovation, technology leadership and close, long-term customer relationships. • The cutting-edge exper
Slide 18: Materials Technology demand drivers
End customer segments Invoicing 2012 Materials Technology demand drivers Medical • Energy demand and oil prices (Oil&Gas and Nuclear) 2% • Consumer demand (razors, electronics, white goods) General Australia 7% • Automotive production Consumer & Electronics Engin- eering Auto- motive Africa/ Asia 16
Slide 19: Sandvik Construction
10% Share of Group’s total invoicing 2012 Sandvik Sandvik Construction Target Niches Breaking, Crushing Underground Construction Surface Drill & Blast Contracting & Screening Contracting Aggregates & Cement Quarrying Civil engineering Contracting Business concept • Target core niches globally • Be G
Slide 20: Construction demand drivers
Construction demand drivers • Population growth Sales distribution Invoicing 2012 • World economy Australia 8% • Urbanization • Infrastructure Underground Surface drill civil engi- and blast Construction industry trends neering 20% contracting Asia Europe 20% 20% • Environment, Health and Safety 37%
Slide 21: Sandvik Venture
7% Share of Group’s total invoicing 2012 Sandvik Venture Sandvik Venture Product Areas Process Diamond Hard Materials Systems Innovations Wolfram Business concept • Focus on product area rather than business area • “Greenhouse” to new and existing businesses with more growth potential and/or strateg
Slide 22: Venture demand drivers
End customer segments Invoicing 2012 Venture demand drivers • Demand for productivity improvements Consumer Australia related 5% 2% • Increased recycling focus • Primary metals consumption leading to global industrial Mining 10% Asia Aerospace production (aerospace, energy applications etc) 5% 19% E
Slide 23: This is Sandvik
This is Sandvik Sandvik – A world class company Sandvik is a high-technology The Group has five business areas Our Objective and global engineering with one ambition; The perfect fit One Sandvik to be Group whose offering In order to transform knowledge into Number One – To achieve includes products
Slide 24: www.sandvik.com
www.sandvik.com SANDVIK] 7 Sanbvic