ANNUAL REPORT 2022
CONTENTS
Year in brief | 1 |
About Sandvik | 2 |
Letter from the CEO | 4 |
Targets and target fulfillment | 6 |
Trends and driving forces | 8 |
Our strategy | 10 |
Alleima listing | 18 |
Our operations | |
Sandvik Mining and Rock Solutions | 20 |
Sandvik Rock Processing Solutions | 26 |
Sandvik Manufacturing and | 32 |
Machining Solutions | |
Our share | 38 |
Directors' Report | |
Group total | 42 |
Development in business areas | 47 |
Corporate governance report | 49 |
Board of Directors | 56 |
Group Executive Management | 58 |
Risk management | 60 |
Sustainability governance | 63 |
Consolidated financial statements | 69 |
Consolidated financial notes | 73 |
Financial statements Parent Company | 110 |
Financial notes Parent Company | 114 |
Board statement on dividend proposal | 132 |
Proposed appropriation of profits | 133 |
Auditors' report | 134 |
Non-financial notes | 139 |
Assurance report | 153 |
Annual General Meeting | 154 |
Definitions | 155 |
Key financial figures | 156 |
Cover photo: Sandvik offers additive manufacturing and metal powder solutions.
The formal Annual Report comprises pages 42-133. The Statutory Sustainability Report and Sustainable Business Report include pages 2-3, 7, 13-14,63-67 and 139-153.
IMPORTANT EVENTS
- Strong demand despite a challenging macroeconomic situation. Order intake grew by 27 percent to SEK 119,196 million (93,665) and revenues by 31 percent to SEK 112,332 million (85,700)
- Organic sales growth amounted to 8 percent, fueled by successful innovations in areas such as digitalization, electrification and automation
- We acquired eight companies in strategic areas, including solid round tools, mine planning and battery diagnostics
- New financial targets were introduced. Adjusted EBITA increased by 26 percent to SEK 22,486 million (17,816) and the adjusted EBITA margin was 20.0 percent (20.8), which is within our new margin target range
- We continued to strengthen our resilience with new cost efficiency measures
- Sandvik Materials Technology was successfully distributed and listed as an independent company, Alleima, on Nasdaq Stockholm
- As a consequence of Russia's war in Ukraine, we decided to wind down our operations in Russia
- We submitted targets for validation to the Science Based Targets initiative
INDICES
Sandvik is included in several prestigious sustainability indices and is a signatory of the UN Global Compact (UNGC).
2022
IN BRIEF
Overview, continuing operations | 20211) | 2022 |
Order intake, MSEK | 93,665 | 119,196 |
Revenues, MSEK | 85,700 | 112,332 |
EBITA, MSEK | 18,088 | 20,145 |
EBITA margin, % | 21.1 | 17.9 |
Adjusted EBITA2), MSEK | 17,816 | 22,486 |
Adjusted EBITA2) margin, % | 20.8 | 20.0 |
Free operating cash flow, MSEK | 14,007 | 12,103 |
Return on capital employed, % | 19.5 | 15.8 |
Earnings per share, diluted SEK | 10.40 | 10.24 |
Adjusted earnings per share, diluted, SEK2) | 10.26 | 11.98 |
Lost Time Injury Frequency Rate, LTIFR3) | 1.2 | 1.3 |
Total Recordable Injury Frequency Rate, TRIFR4) | 3.0 | 3.1 |
Number of employees5) | 38,669 | 40,489 |
Share of women, % | 20.2 | 20.2 |
- Comparative figures for the income statement and cash flow statement have been updated as Sandvik Materials Technology/Alleima was distributed on August 31, 2022. Key figures based on income statement and balance sheet numbers have not been updated in the comparative period.
- Adjusted for items affecting comparability, see page 47. For definitions of alternative performance measures, see page 155.
- Injuries resulting in lost time per million hours worked.
- Total number of recordable injuries per million hours worked.
- Full-timeequivalent.
Revenues by customer segment | Revenues by market area |
Mining, 48% | Europe, 27% | |
Engineering, 22% | North America, 25% | |
Infrastructure, 11% | Asia, 19% | |
Automotive, 7% | Australia, 12% | |
Aerospace, 3% | Africa/Middle East, 11% | |
Energy, 2% | South America, 6% | |
Other, 7% |
2022 IN BRIEF
Order intake and revenues, MSEK
120,000 | |||||
100,000 | |||||
80,000 | |||||
60,000 | |||||
40,000 | 2018 | 2019 | 2020 | 2021 | 2022 |
Order intake | Revenues |
EBITA, MSEK
and EBITA margin, %
25,000 | 22 | |||||
20,000 | 21 | |||||
15,000 | 20 | |||||
10,000 | 19 | |||||
5,000 | 18 | |||||
0 | 2018 | 2019 | 2020 | 2021 | 2022 | 17 |
Adjusted EBITA
Adjusted EBITA margin
LTIFR and TRIFR
4 | |||||
3 | |||||
2 | |||||
1 | |||||
0 | 2018 | 2019 | 2020 | 2021 | 2022 |
TRIFR | LTIFR |
ABOUT SANDVIK
VALUE-CREATING OFFERINGS
BUSINESS AREAS | DIVISIONS | ||
SANDVIK MINING AND ROCK SOLUTIONS | |||
A global leading supplier of equip- | • | Underground Drilling | |
ment and tools, parts, service, digital | • | Load and Haul | |
solutions and sustainability-driving | • | Surface Drilling | |
technologies for the mining and | • | Rotary Drilling | |
infrastructure industries. | • | Mechanical Cutting | |
• | Rock Tools | ||
• | Ground Support | ||
• | Digital Mining Technologies | ||
SHARE OF | SHARE OF | • | Parts and Services |
REVENUES | ADJUSTED EBITA | ||
51% | 50% |
SANDVIK ROCK PROCESSING SOLUTIONS | ||
A leading supplier of equipment, | • | Stationary Crushing and Screening |
service and technical solutions for | • | Mobile Crushing and Screening |
processing rock and minerals in the | • | Attachment Tools |
mining and infrastructure industries. | • | Shanbao |
SHARE OF | SHARE OF |
REVENUES | ADJUSTED EBITA |
8% | 7% |
SANDVIK MANUFACTURING AND MACHINING SOLUTIONS
A market-leading manufacturer | Sandvik Machining Solutions1) | ||
of tools and tooling systems for | • | Sandvik Coromant | |
advanced metal cutting, expanding | • | Seco | |
into digital manufacturing and soft- | • | Walter | |
ware solutions, as well as technolo- | • | Dormer Pramet | |
gies such as additive manufacturing | • | Wolfram | |
and in-line metrology. | Sandvik Manufacturing Solutions1) | ||
• Design and Planning Automation | |||
SHARE OF | SHARE OF | • | Additive Manufacturing |
REVENUES | ADJUSTED EBITA | ||
41% | 43% |
1) Business area segments
Adjusted EBITA is excluding Group activities and items affecting comparability.
2 SANDVIK | ANNUAL REPORT 2022
ABOUT SANDVIK
Sandvik is a global, high-tech engineering group with approximately 40,000 employees and sales in about 150 countries. We have a strong focus on enhancing customer productivity, profitability and sustainability.
KEY CUSTOMER SEGMENTS/SHARE OF REVENUES
Mining | Engineering | |||||
48% | 22% | |||||
We deliver drill rigs, rock-drilling tools and systems, load and haul machines, tunneling equipment, continuous mining and mechanical cutting equipment, crushing and screening, service and sustainability-driving technologies to increase digitalization, automation, safety and customer productivity.
Our tools and tooling systems for metal cutting and manufacturing software are used in
engineeringindustries worldwide, improving
productivity, profitability, quality and safety as well as reducing environmental impact. We are also a global leader in high-alloy metal powder.
Infrastructure
11%
We offer solutions that increase safety and customer productivity in breaking, drilling, cutting, crushing and screening. Application areas include tunneling, quarrying, demolition and recycling.
Aerospace
3%
We work closely with the world's aerospace companies. As they apply new materials to manufacture airplanes that are lighter, safer and more fuel efficient, advanced tooling solutions and end-to-end optimization are critical.
Other
7%
'Other' includes mainly die and mould, electron- ics, medical, pump and valve, rail and defense.
Automotive
7%
Our software solutions, tools and tooling systems for turning, milling and drilling in metals, as well as our industrial metrology offering, increase productivity when manufacturing, for example, engines and transmissions. Metal powders are used in Metal Injection Moulding.
Energy
2%
We supply tools and tooling systems for the energy industry, including clean and renewable energy.
- Sandvik Mining and Rock Solutions ■ Sandvik Rock Processing Solutions ■ Sandvik Manufacturing and Machining Solutions
ANNUAL REPORT 2022 | SANDVIK | 3 |
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Sandvik AB published this content on 09 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2023 13:04:06 UTC.