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 2006.
Link to share price.
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 March 2010).
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. Refer also to the article “Expansive Sandvik” in our 2001 Annual Report.
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 CTT Tools is an example of this strategy. It immediately made Sandvik a world leader in high-speed steel tools 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 Tamrock and 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: The long-term variable salary program was halted for two years but in 2006 the Board decided to implement a cash-settled program. Based on a common goal perception for executives, specialists and shareholders, the program shall form a link to future performance goals aimed at the long-term value enhancement of the company. This is effected by overall common Group and business area focus on and governing towards profitable growth. An additional purpose is to improve the possibilities to recruit and retain key employees in the Group.
There is more to read about this in the Annual Report 2007.
Q:Which are the most important customer segments?
A: Invoiced sales by customer area:
Q: How large are the investments being made by Sandvik in the IT sector?
A: We are investing about SEK 1 billion per year.
Q: Within which areas are the IT investments being made?
A: Production control (IT support in production, planning, materials, control systems, etc.) administrative processes (orders, logistics, etc.), standardization (utilization of production resources) and the Internet (shop on-line, extranet, etc.).
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 Tooling
Annika Roos
+46 (0)26 26 60 32
info.tooling@sandvik.com
Sandvik Coromant
Kent Nordin
+46 (0)26 26 60 81
info.coromant@sandvik.com
Sandvik Hard Materials
Ester Codina
+44 24 76 47 6000
ester.codina@sandvik.com
Sandvik Materials Technology
Lena Berg
+46 (0)26 26 31 11
lena.berg@sandvik.com
Sandvik Mining and Construction
Conny Rask
+46 (0)26 26 51 49
conny.rask@sandvik.com
Information can also be obtained from Martin Lindfors regarding Sandvik Rock Drilling Tools +46 (0)26 26 21 58, Sanna Rasi regarding underground division +358 (0) 205 444 313, Nina Lehtonen regarding surface division +358 (0) 205 444 585 and Satu Rämö regarding Rammer +358 (0) 205 443 455.
Have you got a question?
Send it to info.group@sandvik.com! |