Strong platform supports shift to growth
Our strategy execution has built a strong platform for continuous growth, now we increase our ambitions. We have a group growth target of 7% that will be generated from organic and acquired growth.
Our proven ability to develop new technologies and solutions in tune with our customers, enables us to continue to adjust to and benefit from long-term market trends. This, combined with our solid balance sheet and good cash flow generation will enable us to deliver on our growth target.
Growth targets for the Group and Business areas
Sandvik Mining and Rock Solutions
Sandvik Rock Processing Solutions
Sandvik Machining Solutions
Sandvik Manufacturing Solutions
Enhancing our core competencies and value chain expansion
We continue to advance in our core areas and expand our key competencies within metal cutting and mining and rock processing solutions. Examples are:
We have a strategic priority to become market leaders within round tools and expanding our capabilities and offering for lightweight components.
The transition to battery electric vehicles is a growth opportunity for our mining business where we will continue to build on our leading position within electric equipment for mining and infrastructure.
Expanding in the adjacent value chain
We will expand also in the adjacent value chain. Examples of strategy execution are the acquisitions of Deswik and DSI Underground, making us the market leaders in mine planning software and ground support.
By enhancing our aftermarket offerings we bring value to a larger part of our customers’ value chain while also strengthening our margin resiliance.
Broadening of our digital offering
Driven by our customers needs for increased digitalization, connectivity and automation we are broadening our digital offering. Our goal is to have SEK 6.5 billion in sales by 2025 from software and digital solutions.
Sandvik is in a unique spot to take a strong position in software and digital solutions in the industries where we operate by levaraging our leading footprint in hardware combined with new digital technologies. We can create joint solutions that are stronger than each solution would have been independently.
In the manufacturing industry customers increasingly look for seamless solutions for the total production cycle, from component design, production preparation and machining to quality verification, often referred to as closed-loop manufacturing.
- By acquiring strategically handpicked assets within CAD/CAM software and industrial metrology, we are building an end-to-end digital offering that is agnostic and automates and connects the component manufacturing value chain in digital manufacturing.
Mining and infrastructure
In the mining industry, there is high demand for automated solutions and increased focus on digitalization.
- We offer mining industry-specific digital solutions for predictive insights and real-time analytics to improve operator and equipment performance. Optimine®, our solution for analyzing and optimizing mining production and processes, enables seamless process planning for efficient equipment utilization, including solutions for 3D mine visualization, drill plan visualization, scheduling, task management, location tracking and telemetry reporting.
- Through the acquisitions of Deswik and Newtrax, we have further expanded our offering within mine planning and collision avoidance systems.
- To lead the digitalization journey going forward, we are developing our next generation mining automation system with artificial intelligence (AI) onboard of the equipment enabling it to plan its own route.
- SAM by Sandvik is our digital service within rock processing, to improve customers efficiency and productivity. It enables the automation of our customers’ production process, connecting equipment and collecting data. Through data-driven insights, SAM provides condition monitoring and make predictions based on artificial intelligence (AI).
Combining our core skills and hardware with new digital technologies enables new customer solutions.
Grasping the opportunities of the future
To remain relevant for future business opportunities, and to customers on a broader spectrum, we grow our offering through acquisitions and partnerships that creates new digital and technology solutions. This enables us to meet the commercial trends of the future which we see emerging and taking off.
The development of new materials and production technologies drives the demand of new cutting solutions as lighter, harder and more complex components are required by our customers.
- Through acquisistions we expand our offering within tools for lightweight components to follow the transition to electric vehicles.
Mining and infrastructure
Reducing environmental footprint and increasing efficiency and safety drives the development of electrification and automation technologies.
- We have leading positions within battery electric equipment for underground mining and we are continuously launching new solutions. With the acquisition of Akkurate, we strengthened electrification competence and know-how in battery analytics and also our position as the strongest in-house developer of BEV technology in the industry.
- We target 90% of our mobile crushing and screening offering to be available with an electric option by 2025.
Sustainability drives growth
Sustainability is integrated into the whole value chain of our business. We have a holistic approach that includes customers, suppliers and our own operations. The largest impact is through our products and solutions, which enable our customers to be more sustainable.
Boosting customers' productivity while increasing performance
We provide customers with products and services that boost their sustainability, for example by improving safety and reducing environmental impact, whilst increasing performance. Examples are:
- Reduced waste through high-precision cutting tools designed for specific applications as well as additive manufacturing.
- Recycling of raw materials through buy-back programs of used inserts and tools. Digital tagging of individual products provides our customers with data related to each single item, helping them improve their operations. When we buy back these products, we have the material contents of each product, refining the recycling process further.
- Lower fuel consumption through high-technology mining equipment, including zero CO2 emission through electric mining equipment; electrical vehicles (EV) and battery electric vehicles (BEV).
- Our Reborn crusher solution, where we use worn-out wear parts from other cone crushers to produce new parts, minimizes the use of virgin material. This reduces the environmental footprint by a significantly lower CO2 impact. It also has a positive impact financially, both for Sandvik and our customers.
Indices and international commitments
Sandvik's climate targets are approved by the Science Based Targets initiative (SBTi). We are included in several sustainability indices – an important recognition of our efforts in the area of sustainable business. Examples are CDP, EcoVadis and FTSE4Good.