Sandvik as an investment

We continue to thrive on our value-creating offering of productivity and sustainability based on more than 150 years of leading materials and applications know-how.

We stay relevant by advancing the world through engineering, expanding our core competencies and adding new digital technologies, enabling us to broaden our customer offering.

Our market-leading position and strong customer relationships, combined with a decentralized organization, enable us to respond faster to market trends and customer needs. In a cyclical world, our decentralized business model helps us to be more flexible, reduce earnings volatility and increase predictability.

Our proven resilience in earnings and a strong balance sheet create a solid platform from which to leverage interesting growth opportunities.


Stefan Widing, President and CEO

"In Sandvik, our close to 25 operational management teams are responsible for developing the business and continuously improve its performance and making the shift to growth delivering on our growth target of at least 5% through a business cycle."

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The investment case

Market leading positions – the customer’s first choice

By providing products and services that improve customers’ productivity and sustainability we ensure our market leading positions and can maintain value-based pricing.

Solid financial position supports shift to growth

A solid balance sheet supports our shift to growth and acquisitions to broaden our value-creating offering, lead digitalization and automation and expand geographically in faster growing markets.

Agile through cycle – strong financial performance

Proven resilience in economic downturns and committed to achieving improved through-cycle performance.

Shareholders rewarded

Target to distribute 50% of adjusted earnings per share through the economic cycle and maximize shareholder value.

Share graph

Ownership structure

Ownership structure as of August 31, 2021, the ten largest shareholder groups
Shareholders No. of shares Share capital
Industrivärden 166,200,000 13.2%
Alecta Pensionsförsäkring 58,476,182 4.7%
BlackRock 40,290,030 3.2%
Swedbank Robur Fonder 39,968,199 3.2%
Vanguard 34,607,137 2.8%
Lundbergföretagen AB 33,000,000 2.6%
SEB Fonder 24,328,872 1.9%
Norges Bank 21,609,550 1.7%
AMF Pension & Fonder 21,066,453 1.7%
Fidelity International (FIL) 20,452,997 1.6%
10 largest owners, total 459,999,420 36.6%
Number of shareholders: 122,957
Share distribution as of August 31, 2021
Size of holding
 No. of shares Holding, % Votes, % No. of owners Share of owners, %
1–1,000 25,319,902 2.0 2.0 99,845 81.2
1,001–5,000 41,279,608 3.3 3.3 18,111 14.7
5,001–20,000 35,552,021 2.8 2.8 3,824 3.1
20,001–50,000 19,990,649 1.6 1.6 637 0.5
50,001–100,000 14,204,931 1.1 1.1 199 0.2
100,001–1,000,000 76,240,878 6.1 6.1 231 0.2
1,000,001–5,000,000 140,501,428 11.2 11.2 72 0.1
5,000,001–10,000,000 130,703,707 10.4 10.4 19 0.0
10,000,001–50,000,000 361,251,071 28.8 28.8 17 0.0
50,000,001–100,000,000 58,476,182 4.7 4.7 1 0.0
100,000,001– 166,200,000 13.2 13.2 1 0.0
Anonymous 184,665,546 14.7 14.7 N/A N/A
Total 1,254,385,923 100.0 100.0 120,988 100.0

Distribution of shareholding by country

  • Sweden 56.2
  • United States 16.9
  • Finland 2.1
  • Norway 2.1
  • United Kingdom 1.2
  • Other 6.8
  • Anonymous 14.7

Source: Modular Finance

Dividend information

Sandvik's goal is that the dividend shall amount to 50% of the reported earnings per share.

Earnings and dividends per share, SEK

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Information

Name:
Sandvik
Ticker code:
SAND
ISIN code:
SE0000667891
Currency:
SEK
Market place:
XSTO
List:
Large cap
Latest price:
203.1
Closing price:
203.1
Latest change:
21 Sep 2021
All time high:
06 Apr 2021
All time low:
21 Sep 2001
Year high:
244.3
Year low:
155.4
Number of shares:
1,254,385,923

Strategic objectives

Sandvik will grow by focusing on six strategic areas. We have defined targets for 2025 in each of them to ensure transparency and follow-through.

  • Shift to growth
  • Digital shift
  • Sustainability shift
  • Customer's first choice
  • Agile through cycle
  • Employer of choice

Read more in the About us section

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Long-term financial targets

Sandvik has long-term financial targets focusing on growth, profitability, dividend and a strong financial position.

Growth1): ≥5%

A growth of ≥5 percent through a business cycle, organically and through acquisitions.

Trough EBIT margin: ≥16%

A trough EBIT margin of ≥16 percent rolling 12 months, adjusted for items affecting comparability and metal prices.

Dividend1) payout ratio: 50%

A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparability, through a business cycle.

Net debt/equity ratio: <0.5

A net debt/equity ratio below 0.5.

1) The growth and dividend targets refer to average through a business cycle, which is here defined as 2016–2020.

Sustainability goals

To make the shift that will drive more sustainable business we have four ambitious sustainability goals for 2030. Our four goals:

More than 90% circularity

We will drive the shift to more circular business models and use of resources.

Halve the CO2 impact

We will deliver on our commitments to reduce impact on the climate.

Zero harm to people

We aspire to the highest standards for people.

Always do the right thing

We will constantly aim higher in ethics and transparency.