Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Merger or Acquisition (October 2020)
15 slides from Sandvik Ab's merger presentation, Oct 20, 2020
Slide 1: Sandvik to acquire software company CGTech
SANDVIK TO ACQUIRE SOFTWARE COMPANY CGTECH 20 OCTOBER 2020
Slide 2: Recap CMD 2019
RECAP CMD 2019 The SMS vision is to become the world leading solutions provider to the wider component manufacturing industry. 2
Slide 3: The manufacturing value chain
THE MANUFACTURING VALUE CHAIN COMPONENT DESIGN PRODUCTION PREPARATION MACHINING VERIFICATION OUR OWN SOLUTIONS I ACQUISITIONS I PARTNERSHIPS 3
Slide 4: Machine-shop workflow
MACHINE-SHOP WORKFLOW MACHINING PRODUCTION PREPARATION VERIFICATION 4 COMPONENT DESIGN
Slide 5: Production preparation - key decision area
PRODUCTION PREPARATION - KEY DECISION AREA MACHINING PRODUCTION PREPARATION VERIFICATION Select Computer Aided Simulate, verify and manufacturing Manufacturing optimize post- process sequence “CAM” programming processed NC-code 5 COMPONENT DESIGN
Slide 6: Simulation, verification and optimization
SIMULATION, VERIFICATION AND OPTIMIZATION MACHINING SIMULATION, VERIFICATION AND OPTIMIZATION - Simulation of the machining process with a digital twin. - Verification that the process has MACHINE been designed to specification. PRODUCTIVITY - Optimization of machining strategy improving time and co
Slide 7: CGTech
CGTECH SANDVIK P|
Slide 8: CGTech at a glance
CGTECH AT A GLANCE COMPANY PROFILE MAIN CUSTOMER VERTICALS Established: 1988 • Aerospace & defense • Automotive and transportation Offices: US (HQ), 11 additional countries • Machinery and tooling • Mold and die CEO Jon Prune Revenue: 49MUSD 2019A Employees: ~180 Customers Americas (44%), Europe (32
Slide 9: CGTech product overview
CGTECH PRODUCT OVERVIEW SOFTWARE VALUE PROPOSITION • Eliminates the process of manually proving-out NC programs. • Reduces scrap loss and rework. • Optimizes NC programs in order to both save time and produce higher quality results. Since 1988 CGTech’s product VERICUT®, has • Simulates all types of
Slide 10: CGTech – a perfect strategic fit
CGTECH – A PERFECT STRATEGIC FIT 01 02 03 04 05 Leading player in Premium offering with Platform to provide Healthy profitability and Opportunity for digital twin closely adjacent strong brand name and machining strategies. source of reoccurring leadership in diverse market to core consumer regard.
Slide 11: Transaction overview & financial impact
TRANSACTION OVERVIEW & FINANCIAL IMPACT 11
Slide 12: Transaction overview
TRANSACTION OVERVIEW TRANSACTION • Enterprise value: not disclosed CONSIDERATIONS • Sellers: Jon Prune • Estimated closing: expect to close the transaction Q4 2020, subject to customary regulatory approvals FINANCIAL • Financial profile: slightly margin dilutive to Sandvik Manufacturing and IMPACT M
Slide 13: Summary
SUMMARY SANDVIK P|
Slide 14: A strategic acquisition in the important production preparation step
A STRATEGIC ACQUISITION IN THE IMPORTANT PRODUCTION PREPERATION STEP Strong strategic fit Healthy long- term growth prospects Another step towards digital manufacturing 14
Slide 15: Questions & Answers
QUESTIONS & ANSWERS SANDVIK P|