Frequently asked questions

Q: What is Sandvik manufacturing?
A: Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas – tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys and resistance heating materials and process systems.

Q: Which is Sandvik's business concept?
A: To develop, manufacture and market high-tech products and services that facilitate higher customer productivity and profitability.
See more about Concept and strategy.

Q: How many employees work for Sandvik – and how are they distributed among the various countries?
A: We currently have about 49,000 employees. Refer to the list of the Group's ten most important markets under the title 'The world as our home market'.

Q: In terms of sales, which are the Group's largest markets/countries?
A: See above.

Q: How can the various Sandvik companies throughout the world be contacted?
A: Search for them on 'our locations' web page.

Q: Are there any more brands in addition to Sandvik within the Group?
A: Sandvik is the brand for e g Sandvik Materials Technology, Sandvik Coromant, Sandvik Hard Materials, Sandvik Mining, Sandvik Construction and Sandvik Process Systems. But many other brands exist.

Q: What does Sandvik do in the environmental area?
A: You can read about Sandvik and the environment right here. Refer to our Environmental Policy.
This is what Sandvik Materials Technology and Sandvik Coromant do.

Q: How much does Sandvik spend on research and development?
A: Almost SEK 3 billion per year. Read more about that here.

Q: When was Sandvik founded?
A: Sandvik AB was established in 1862 and stock-exchange listed in 1901.

Q: Can you describe Sandvik's history?
A: A list of the most important events can be found here.

Q: Financial targets for the Group?
A:

Yearly growth, total	8%
Return on capital employed (ROCE)	25%
Net debt ratio	<0,8
Dividend	50% of earnings per share

Q: What is the dividend policy?
A: The principal financial goal of the Sandvik Group is to create attractive capital return and value growth for those who invest in the Sandvik share. The goal is that the dividend and value growth shall exceed the engineering industry's average and that shareholders shall receive a dividend of at least 50% of earnings per share.
Read more about this in the Annual Report 2011.
Link to share info.

Q: Your competitors?
A: Refer to the list in the Investor Relations section.

Q: Credit rating?
A: Sandvik's Standard & Poor's rating is A-2 for short-term borrowing and BBB+ for long-term borrowing. (Valid since May 2011).

Q: Which companies have been acquired by Sandvik in recent years?
A: A list of company acquisitions made since 1993 can be found under Company Information in the Investor relations section.

Q: Which are the acquisition criteria?
A: A guiding principle is that acquired companies must have operations that lie within the framework of our three business areas and that strengthen Sandvik's position in the market. Acquisitions can also be made in closely related fields that are within the Group's area of expertise.

The objective may be to become established in a new product niche or to consolidate the Group's position in established areas. The acquisition of DFiamond Innovations is an example of this strategy. It immediately made Sandvik a world leader in superhard materials used in metalworking. The acquisition of Tamrock gave the Group a completely new position in the mining and construction industry and served as the foundation for the Mining and Construction business area.

Acquisitions can open up new application areas. Kanthal is one example. The company is a world leader in metallic and ceramic resistance materials, as well as in various forms of advanced heating systems, and has broadened the knowledge and range of products offered in the Materials Technology business area.

The starting point for an acquisition may be the desire to strengthen the Group's position in a geographical area or add a new channel into a market. The purchase of MKTC, Russia's largest producer of cemented carbide gave Sandvik a foothold in the Russian market. As a result of the acquisition of Baildonit, a Polish tool manufacturer, the Group gained a strong position in Poland and other countries in Eastern Europe. MRL, an American company, opened the door to the country's electronics industry for Kanthal's resistance materials and systems.

An acquisition can also result in the addition of a new, strong brand to the Group. Besides Kanthal, the Walter acquisition is a good example of this, Walter being a very strong brand in metalworking.

One criterion in connection with a Sandvik acquisition is that the new company must contribute to Group earnings within one to two years. The basic concept is that the profitability of an acquired company will increase over the short term even though certain restructuring may be required initially. This is – and has been – a successful strategy.

Q: Who are the largest shareholders?
A: Refer to the current list.

Q: Is there any bonus program for executives?
A: In 2006, the Board decided to implement as a long-term variable salary a cash-based program. Based on a common goal perception for executives, specialists and shareholders, the program was to form a link to future performance goals aimed at the long-term enhancement of the value of the company. This was to be achieved through an overall common Group and business area focus on and governing towards profitable growth. An additional purpose was to improve the possibilities to recruit and retain key employees in the Group.

There is more to read about this in Note 3.5 in the Annual Report 2011.

Q: Is the proportion of purchased services increasing/decreasing?
A: The proportion is low – approximately unchanged.

Q: Who are the persons responsible for information within Sandvik?
A: Here, you can find links to information managers at:
Sandvik AB

Others can be found here:

Sandvik Machining Solutions
Jenny Fredriksson
+46 (0)26 26 60 26
info.tooling@sandvik.com

Sandvik Coromant
Jessica Alm
+46 (0)26 26 67 46
info.coromant@sandvik.com

Sandvik Materials Technology
Lena Berg
+46 (0)26 26 31 11
lena.berg@sandvik.com

Sandvik Mining
Conny Rask
+46 (0)26 26 51 49
conny.rask@sandvik.com

Sandvik Construction
Satu Rämö
+358 (0) 205 443 455
satu.ramo@sandvik.com