Listing of Alleima

The Sandvik AB 2022 Annual General Meeting has decided, in accordance with the Board of Directors’ proposal, to distribute all shares in the wholly-owned subsidiary Alleima (former business area Sandvik Materials Technology) to the shareholders of Sandvik.

The Board of Directors of Sandvik believes that Alleima will develop more favorably by itself, increasing opportunities for profitable growth. For the remaining Sandvik Group the change is deemed to enable stronger focus on profitable growth in the remaining areas. The sharpened focus of both Alleima and the remaining Sandvik Group has the potential to improve long-term shareholder value for Sandvik shareholders.

Registered shareholders of Sandvik on the record date for distribution of shares are entitled to receive one (1) share in Alleima, for no consideration, for every five (5) shares held in Sandvik. If a shareholder’s shareholding in Sandvik is not evenly divisible by five (5), the fraction of shares which the shareholder’s shareholding in Sandvik otherwise would entitle to will be combined with all other shareholders’ fractions of shares into whole shares in Alleima, which will be sold on Nasdaq Stockholm through SEB. The proceeds from such sales, free of any commissions, will then be paid to such shareholders through the Euroclear system on a pro rata basis.

No. Registered (directly registered or nominee registered) shareholders of at least five (5) Sandvik shares on the record date for distribution will automatically receive shares in Alleima. Holders of ADRs in Sandvik should read “Holders of Sandvik American Depositary Receipts” on page [5] in the information brochure.

The record date is expected to be August 29, 2022, with the distribution of the shares in Alleima and the first day of trading in the Alleima share on Nasdaq Stockholm expected to occur on August 31, 2022.

A prospectus, which will contain information about Alleima and the risks associated with an investment in Alleima shares, is expected to be published August 4, 2022. The prospectus will be available for downloading on the Sandvik Group and Alleima websites and can also be obtained in paper format from the Sandvik Group and Alleima offices.

The distribution of the shares in Alleima is expected to fulfill the requirements set out in the so-called “Lex Asea” rules and will therefore not be immediately taxable for individuals and limited liability companies that are Swedish tax residents. The tax basis for the shares in Sandvik that carry distribution rights will however be allocated among these shares and the shares received in Alleima. The allocation of the tax basis will be based on the change in value of the shares in Sandvik due to the distribution of the shares in Alleima. Sandvik will request general guidelines from the Swedish Tax Agency regarding the allocation of the tax basis. Information regarding the Swedish Tax Agency’s general guidelines will be published as soon as possible on the websites of Sandvik Group, Alleima and the Swedish Tax Agency. No Swedish withholding tax will be levied on a distribution made in accordance with the requirements set out in the so-called “Lex Asea” rules. However, for shareholders who receive fractions of shares that are subsequently sold on their behalf, the sale of fractions of shares will result in capital gains taxation. Such shareholders should read “Taxation upon the disposal of shares and fractions of shares in Alleima” on page 35 in the information brochure.

The new brand will be fully activated at the date of listing, and it is not before that SMT will use the logotype and name internally and externally. Preparing for this transition is ongoing. Until listing, SMT will continue to conduct its business as Sandvik and within the Sandvik framework.