Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Merger or Acquisition (August 2021)
20 slides from Sandvik Ab's merger presentation, Aug 25, 2021
Slide 1: Sandvik to acquire leading CAM company CNC Software – creators of Mastercam
SANDVIK TO ACQUIRE LEADING CAM COMPANY CNC SOFTWARE – CREATORS OF MASTERCAM AND NEW SMF OJBECTIVES 1
Slide 2: A business geared for growth
A BUSINESS GEARED FOR GROWTH HIGH GROWTH RATES EXPECTED IN SANDVIK MANUFACTURING SOLUTIONS 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 SO
Slide 3: Sandvik Manufacturing Solutions – our three divisions
SANDVIK MANUFACTURING SOLUTIONS – OUR THREE DIVISIONS DIVISION ADDITIVE MANUFACTURING DIVISION METROLOGY CAGR Addressable Serviceable Serviceable SEK market market market Design & Planning 26B 26B 7% Additive Manufacturing 46B 11B *1 20% DIVISION Industrial DESIGN & PLANNING Metrology 100B 12B *2 12
Slide 4: Stepping up the digital shift
STEPPING UP THE DIGITAL SHIFT MASTERCAM STRENGHTENS OUR MANUFACTURING SOLUTIONS OFFERING With DWFritz Automation, Sandvik will take a leading position in high- speed, non-contact, in-line metrology and precision automation SIGNING ANNOUNCED JULY 12, 2021 CLOSING EXPECTED DURING SECOND HALF OF 2021 A
Slide 5: Design & Planning Automation and CAM
DESIGN & PLANNING AUTOMATION AND CAM 5
Slide 6: Design & Planning Automation division
DESIGN & PLANNING AUTOMATION DIVISION MISSION • Automate the manufacturing value chain for small and mid-sized manufacturing companies – and deliver competitive point solutions for large OEMs • Deliver products that are open and agnostic, thus simplifying integration with installed base • Generate r
Slide 7: Strategy to create a strong position in the CAM market
DESIGN & PLANNING AUTOMATION DIVISION STRATEGY TO CREATE A STRONG POSITION IN THE CAM MARKET • To build an offering around Computer Aided Manufacturing (CAM), Design for Manufacturability and Production logistics – for manufacturing processes such as machining, additive manufacturing, metal forming,
Slide 8: Why CAM?
WHY CAM? WILL PLAY A VITAL ROLE IN OUR DIGITAL MANUFACTURING SOLUTIONS Improve customers’ productivity 1 Complements premium tooling business 2 CAM software market opportunity 3 through digital manufacturing • Tool selection and productivity • Growing into attractive software • CAM is a center piece
Slide 9: CNC Software, Inc. / Mastercam
CNC SOFTWARE, INC. /MASTERCAM 9
Slide 10: CNC Software in brief
CNC SOFTWARE IN BRIEF OVERVIEW COMPANY PROFILE 2020 MAIN CUSTOMER INDUSTRIES • CNC Software Inc. is a leading provider of CAD/CAM Geographic location: Worldwide • Aerospace & Defense software solutions for manufacturing industries and the Headquarters: Connecticut, USA • Automotive company behind Ma
Slide 11: CNC Software investment highlights
THE HEADQUARTER IN TOLLAND, CONNECTICUT, USA CNC SOFTWARE INVESTMENT HIGHLIGHTS 5 Extensive public beta-testing. Mastercam’s mission is 1 Leading brand within the CAM market (Mastercam), the “to create software and services that solve the world’s most widely used CAM-software in the industry – with
Slide 12: A strong strategic fit
CNC SOFTWARE A STRONG STRATEGIC FIT 01 02 03 04 05 Access to world-class Gaining sizeable Complements Sandvik’s Gaining digital reach to Compelling financial CAM brand and market share on high leading know-how in the SME market through model with ~60% large customer base, growth CAM-market machining
Slide 13: Synergies evolving post acquisition
SYNERGIES EVOLVING POST ACQUISITION LOOKING AT THE OVERALL SANDVIK OFFERING • Connecting the “art to part” value chain on a common “manufacturing centric” platform, unlocking great value for the customer • Cross-selling opportunities – and access to SME’s • Shared R&D resources and efficiency gains
Slide 14: Transaction overview and financial impact
TRANSACTION OVERVIEW AND FINANCIAL IMPACT 14
Slide 15: Transaction overview
TRANSACTION OVERVIEW CNC SOFTWARE, INC. TRANSACTION • Enterprise value: Not disclosed CONSIDERATIONS • Estimated closing: Expected to close Q4 2021, subject to customary regulatory approvals FINANCIAL • Financial profile: Underlying EBITA margin is expected to be accretive to Sandvik Manufacturing I
Slide 16: Summary
SUMMARY SANDVIK P|
Slide 17: Mastercam – a strong strategic fit
MASTERCAM – A STRONG STRATEGIC FIT PLAYING A VITAL ROLE IN THE DIGITAL MANUFACTURING PROCESS • CAM plays a vital role in the digital manufacturing process, enabling new and innovative solutions in automated design for manufacturing. Strong strategic fit • The CAM market has been identified as the mo
Slide 18: New objectives 2025 for SMF
NEW OBJECTIVES 2025 FOR SMF 18
Slide 19: New objectives 2025 – Sandvik Manufacturing Solutions
NEW OBJECTIVES 2025 SANDVIK MANUFACTURING SOLUTIONS With the acquisition (subject for closing) of Cambrio, DWFritz Automation and CNC Software (Mastercam), Sandvik Manufacturing Solutions have built a portfolio which together with the organic growth of the current business will exceed the earlier co
Slide 20: Questions & Answers
QUESTIONS & ANSWERS SANDVIK P|