Strong financial performance

Our decentralized business model drives accountability and speed in operating decisions close to customers. The improved performance review system implies increased transparency. Combined this will help us achieve improved through-cycle performance.

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Some examples as to why Sandvik’s financial performance has and will improve.

  • In Sandvik Mining and Rock Technology flexibility has increased due to higher share of outsourced product assembly, to currently about 40% from about 25% at the previous peak in the mining industry.
  • 3% annual productivity improvement (revenues / full time employee) is an internal KPI introduced in 2016.
  • 30 production units closed since 2015 with continuous review of the manufacturing footprint.
  • Targeting improved management of net working capital, to reach ~25% of revenues long-term.
  • Increased adoption of value-based pricing.
  • Announced 1.7bn SEK savings program in Q2 2019 including a personnel reduction of about 3,000.

Go to the section for financial information

Growth: 5% CAGR


Significant EBIT and margin improvement


More flexibility by higher outsourcing in SMRT


Targeting improved management of NWC


Strengthened balance sheet