Slide 1: Interim Report First Quarter 2022
INTERIM REPORT FIRST QUARTER 2022
Slide 2: Summary Q1
SUMMARY Q1 30% Order intake growth at 5th CONSECUTIVE QUARTER WITH DOUBLE-DIGIT GROWTH IN ORDERS fixed exchange rates • Solid broad-based demand across the business, with strong contribution from acquisitions • Organic order intake growth was 13%. Total order intake growth was 37%, and at fixed exch
Slide 3: Staying Ahead Through Innovation
STAYING AHEAD THROUGH INNOVATION OSPREY® 2507 • Sandvik is the first company in the world to succeed with 3D-printing in super-duplex stainless steel, Osprey® 2507 • Powder-based technologies like additive manufacturing are labeled “recognized green technologies” – and offer many sustainability adva
Slide 4: Staying Ahead Through Innovation
STAYING AHEAD THROUGH INNOVATION SANDVIK TH665B 65 TONNE PAYLOAD, WORLD’S LARGEST BATTERY-ELECTRIC UNDERGROUND SELF-SWAPPING BATTERY TRUCK. ZERO CO2 AND DIESEL UP TO 90% REDUCTION IN 20-30% FASTER THAN PARTICULATE ENERGY USE, NOISE AND CLASS-LEADING DIESEL . EMISSIONS. HEAT. 4
Slide 5: YoY Market Development
YOY MARKET DEVELOPMENT Mining Engineering Automotive Energy Infrastructure Aerospace Percent of Group 41% 23% 8% 8% 9% 4% revenue 2021 Percent of Group Q1 Y/Y revenue 2021 order intake EUROPE 31% +4% NORTH AMERICA 23% +37% ASIA 17% +16% AFRICA AND MIDDLE EAST 12% +12% AUSTRALIA 9% +38% SOUTH AMERICA
Slide 6: Order Intake and Revenues
ORDER INTAKE AND REVENUES MSEK 35,000 110,000 ORDER INTAKE 30,000 100,000 REPORTED (SEK M) 25,000 20,000 90,000 80,000 30,474 15,000 70,000 10,000 60,000 REVENUES 5,000 10,000 REPORTED (SEK M) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 24,921 2018* 2019* 2020* 2021* 2022 ORDER INTAKE, RE
Slide 7: Growth in Order Intake and Revenues
GROWTH IN ORDER INTAKE AND REVENUES ORDER INTAKE REVENUES MSEK MSEK 50% 120,000 50% 120,000 40% 110,000 40% 110,000 30% 100,000 30% 100,000 20% 90,000 20% 90,000 10% 80,000 10% 80,000 0% 0% -10% -10% -20% -20% -30% -30% -40% -40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 8: Adjusted EBITA Development
Adj. EBITA margin: ADJUSTED EBITA DEVELOPMENT 20.2% MSEK 6,000 26% +27% • Adj. EBITA SEK 5,043 M (3,960) 5,000 24% • Margin 20.2% (21.4) 4,000 22% • Group leverage 5% 3,000 • Lower leverage on tough comparable 20% and increased inflationary pressure 2,000 18% • Diluting impact from structure of -110
Slide 9: Mining and Rock Solutions
42% SHARE OF REVENUES 2021 MINING AND ORDER INTAKE AND REVENUES MSEK ROCK SOLUTIONS 20,000 140% 16,000 120% ORDER INTAKE 100% 12,000 • Continued strong momentum, with aftermarket and consumables 8,000 80% businesses on all-time high, continued record levels for our major equipment divisions 4,000 •
Slide 10: Rock Processing Solutions
8% SHARE OF REVENUES 2021 ROCK PROCESSING ORDER INTAKE AND REVENUES MSEK SOLUTIONS 3,000 160% 140% ORDER INTAKE 2,000 120% • Solid underlying demand, especially in mining 100% 1,000 80% • Record-high order intake level • Organic order intake growth of 1% on tough comparables, total 0 0% order intake
Slide 11: Manufacturing and Machining Solutions
37% SHARE OF REVENUES 2021 MANUFACTURING AND ORDER INTAKE AND REVENUES MSEK MACHINING SOLUTIONS 12,000 110% 105% ORDER INTAKE 8,000 100% • Total order intake growth of 25%, at fixed exchange rates growth was 95% 19%. Organic order intake growth was 6%, driven by general 4,000 90% engineering and aer
Slide 12: Materials Technology
DISCONTINUED OPERATIONS 13% SHARE OF REVENUES 2021 MATERIALS ORDER INTAKE AND REVENUES MSEK TECHNOLOGY 6,000 160% 140% ORDER INTAKE 4,000 120% • Strong market demand across all segments, especially strong 100% order intake growth in Tube and Kanthal 2,000 80% • Total order intake growth at 61%, and
Slide 13: Other Events
OTHER EVENTS • Following media reports focusing on past sales to companies in Russia’s military industry, Sandvik immediately initiated an investigation, supported by external legal advisors • In the investigation we have not identified any violations of sanctions • Before 2018 we identified cases l
Slide 14: Cecilia Felton, CFO
CECILIA FELTON CFO 14
Slide 15: Financial Summary
FINANCIAL SUMMARY MSEK Q1 2021* Q1 2022 GROWTH OI REV ORGANIC 13% 9% ORDER INTAKE 22,206 30,474 STRUCTURE 16% 18% REVENUES 18,528 24,921 ORG + STR 30% 27% ADJUSTED EBITA 3,960 5,043 CURRENCY 7% 7% TOTAL 37% 35% ADJUSTED EBITA MARGIN 21.4% 20.2% NET FINANCIAL ITEMS -267 -299 TAX RATE EXCLUDING IAC 21
Slide 16: Bridge Analysis
GROUP LEVERAGE: BRIDGE ANALYSIS 5% Q1 Q1 MSEK 2021* ORGANIC CURRENCY** STRUCTURE 2022 REVENUES 18,528 1,638 1,465 3,290 24,921 ADJUSTED EBITA 3,960 75 541 466 5,043 ADJUSTED EBITA MARGIN 21.4% 5% 20.2% ACCRETION/DILUTION -1.4% 1.3% -1.1% * Best estimates excluding SMT ** Currency effect net of struc
Slide 17: Net Financials
NET FINANCIALS MSEK Q1 2021* Q1 2022 INTEREST NET -71 -74 • Interest net slightly increased due to higher interest on currency hedges PENSION -25 -42 BANK CHARGES -16 -20 OTHER FINANCIAL INCOME AND COST 2 -14 LEASES IFRS16 -22 -35 FX AND OTHER ASSET CLASSES -135 -113 TOTAL -267 -299 * Best estimates
Slide 18: Tax Rate
TAX RATE Q1 2021* Q1 2022 REPORTED 21.0% 23.4% EXCLUDING IAC 21.7% 23.2% NORMALIZED 23.6% 23.2% For continuing operations. IN LINE WITH 22-24% GUIDANCE FOR 2022 * Best estimates excluding SMT 18 SANDVIK: Interim report on the first quarter 2022 Comments and numbers refer to continuing operations unl
Slide 19: Net Working Capital
NET WORKING CAPITAL NET WORKING CAPITAL PER BA, % OF REVENUES MSEK 30,000 40% 40% 25,000 35% 35% 20,000 30% 30% 15,000 25% 25% 10,000 20% 20% 5,000 15% 0 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018* 2019* 2020* 2021* 2022 2018 2019
Slide 20: Free Operating Cash Flow
FREE OPERATING CASH FLOW MSEK 7.000 28.000 MSEK Q1 2021 Q1 2022 6.000 24.000 EBITDA * 4,703 5,847 5.000 20.000 NON-CASH ITEMS -276 -269 4.000 16.000 NWC CHANGE -851 -3,034 3.000 12.000 CAPEX ** -746 -251 FOCF *** 2,830 2,292 2.000 8.000 1.000 4.000 * Adjusted for cash items related to certain acquis
Slide 21: Net Debt
NET DEBT GROUP TOTAL MSEK GEARING 40,000 0.4 30,000 0.3 • Net gearing at 0.31 20,000 0.2 10,000 0.1 • Financial net debt SEK 16.5 billion 0 0.0 • Net debt SEK 26.4 billion -10,000 -0.1 -20,000 -0.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 FINANCIAL NET DEBT LEASES
Slide 22: Outcome Versus Guidance
OUTCOME VERSUS GUIDANCE Outcome Guidance Underlying currency yoy effect (MSEK) 636 400 whereof SMT 75 Metal price effect in quarter (MSEK) 327 80 Capex (BSEK) -0.8 Interest net (BSEK) -0.1 Normalized tax rate (%) 23.2% 22 SANDVIK: Interim report on the first quarter 2022 Comments and numbers refer t
Slide 23: Guidance Q2 and FY 2022
GUIDANCE Q2 AND FY 2022 CAPEX (CASH) Estimated to <SEK 5.0 B for 2022 Given currency rates at end of March 2022 the effect on operating profit from transaction and CURRENCY translation would be SEK +600 M for Q2 2022 (of which SEK +50 M is estimated to be attributable EFFECTS to SMT) INTEREST NET Un
Slide 24: Solid Demand and Business Momentum
SOLID DEMAND AND BUSINESS MOMENTUM SOLID UNDERLYING DEMAND AND BUSINESS MOMENTUM • Another strong growth-quarter delivered with order intake levels remaining on record-high levels • Solid demand for Sandvik’s sustainable and digital solutions with good innovation pace • Strong performance from acqui
Slide 25: Q&A
O&A (a) > Z Ss a
Slide 26: Back-up Slides
BACK-UP SLIDES SANDVIK P|
Slide 27: Adjusted EBITA by Business Area
Q1 STRUCTURE/ Q1 MSEK 2021 ORGANIC CURRENCY METALS SMT* 2022 MINING AND ROCK SOLUTIONS REVENUES 8,019 1,071 713 2,225 12,029 ADJUSTED EBITA 1,687 67 289 370 2,413 ADJUSTED EBITA MARGIN 21.0% 20.1% ROCK PROCESSING SOLUTIONS REVENUES 1,727 82 149 57 2,016 ADJUSTED EBITA 287 -23 49 7 320 ADJUSTED EBITA
Slide 28: Adjusted EBIT by Business Area
Q1 STRUCTURE/ Q1 MSEK 2021 ORGANIC CURRENCY METALS SMT* 2022 MINING AND ROCK SOLUTIONS REVENUES 8,019 1,071 713 2,225 12,029 ADJUSTED EBIT 1,655 68 285 315 2,324 ADJUSTED EBIT MARGIN 20.6% 19.3% ROCK PROCESSING SOLUTIONS REVENUES 1,727 82 149 57 2,016 ADJUSTED EBIT 287 -23 49 5 318 ADJUSTED EBIT MAR
Slide 29: Loan and Duration Profile
LOAN AND DURATION PROFILE AMOUNT DURATION LONG TERM Swedish MTN -1,000 1.8 Years 68% European MTN Bank Loans -16,242 -5,676 4.9 Years 2.6 Years SHORT TERM Commercial Paper -8,685 0.3 Years Swedish MTN 0 0.0 Years 32% European MTN Bank Loans 0 -197 0.0 Years 0.0 Years TOTAL 13,799 3.1 Years Committed
Slide 30: Loan Maturity Profile
LOAN MATURITY PROFILE AVERAGE MSEK INTEREST RATE: ~2% 10,000 8,000 6,000 4,000 2,000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 30 SANDVIK: Interim report on the first quarter 2021 Comments and numbers refer to continuing operations unless otherwise stated.
Slide 31: Disclaimer Statement
DISCLAIMER STATEMENT “Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors for example, the effect of economic conditions, exchange-rate