Solid financial position supports shift to growth
We have a growth target of at least 5% through a business cycle, where 50% will be generated from organic growth, and 50% from acquired growth.
Our proven ability to develop new technologies and solutions in tune with our customers, enables us to continue to adjust and benefit from long-term market trends. This, combined with our solid balance sheet, good cash flow generation and a net cash position, will enable us to deliver on our growth target.
Reaching ≥5% growth through cycle
>2x Business areas to grow >2x faster than their respective markets :
| Sandvik Mining and Rock Solutions | ~3% |
| Sandvik Rock Processing Solutions | 2.5–3% |
Sandvik Manufacturing and Machining Solutions |
|
| Sandvik Machining Solutions* | ~2% |
| Sandvik Manufacturing Solutions* | >10% |
*Business area segment
Expanding our core competencies and the customer offering
We continue to advance in our core areas, building on and expanding our key competencies within metal cutting, mining equipment and advanced materials.
Combining our core skills and hardware with new digital technologies enables new customer solutions.
Trends shaping our reality
We see several trends impacting our markets. Examples are digitalization and connectivity, technological advancements, drive for sustainability, climate change and resource efficiency, as well as economic and political developments.
Grasping the opportunities of the future
To remain relevant for future business opportunities we grow our customer offering through acquisitions and partnerships to create new digital and technology solutions to be relevant to customers on a broader spectrum. This enables us to meet the commercial trends of the future which we see emerging and taking off.
The illustration shows the degree of maturity of various technologies.
Examples of future opportunities
Closed-loop manufacturing
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 – so-called closed-loop manufacturing. New digital solutions make us relevant for customers throughout the value chain.
Development of new materials and production technologies
- We develop cutting technologies as lighter, harder and more complex components are required by our customers. Each requires new advanced cutting technologies.
- We have expanded our offering of Battery Electric Vehicles (BEV) in underground mining through the recent acquisition of Artisan.
Digitalization
New technologies enable integrated working processes for increased efficiency and sustainability. Examples are:
- Automation in the mining industry offers increased utilization of the equipment, improving productivity as well as sustainability. The productivity gains of an automated solution could be significant. Safety benefits related to automated vehicles being controlled from the surface, hence less people required in the mine.
- Mining industry-specific digital solutions for predictive insights and real-time analytics to improve operator and equipment performance. Optimine® enables seamless process planning for efficient equipment utilization, including solutions for 3D mine visualizer, drill plan visualizer, scheduling, task management, location tracking and telemetry reporting.
Acquisitions
The number of acquisitions has increased since 2018, supported by a strong balance sheet. 50 percent of our growth target of at least 5% over a business cycle will be coming from acquired growth and each division owns its own M&A agenda.
Go to the acquisitions page
Divestments
In recent years a number of businesses have been divested as they were viewed as non-core to Sandvik or not an area where we believe will be a leading supplier. Divestments include Sandvik Drilling & Completions (Varel), Hyperion, Sandvik Process Systems, Wire.