Positive tone at Sandvik’s capital markets day in Germany
We are delivering on our promises and have improved profitability levels. Several of our businesses are well positioned for further growth. This was two of the main messages at the Sandvik’s capital markets day in Tübingen, Germany, on November 21, attended by some 80 external guests from the financial markets. The audience got an in-depth review of the different businesses at Sandvik.
This was Björn Rosengren's second capital markets day as the CEO for Sandvik. The most recent one was held in Sandviken in May 2016.
"We have improved our profitability levels and we are delivering shareholder value. We are well positioned for future growth. I expect all of our businesses to continue to improve," said Björn Rosengren who, together with CFO Tomas Eliasson and the business area heads, walked the audience through Sandvik's strategy for delivering customer productivity.
Klas Forsström, head of Sandvik Machining Solutions, described his business area's continued focus on strengthening the core business of cutting tools. A few highlights:
- A maintained high focus on R&D, product development and operational excellence
- Increased share of round tools, services and customized offerings
- Accelerated growth through development of adjacent offerings
- Commercialization of the Sandvik Additive manufacturing capabilities
- Broadening of digital service offerings
"Sandvik Machining Solutions will have a continued strategic focus on technical innovation, customer relations and operational excellence. As we have said before, we will have an increased focus on mergers and acquisitions in order for us to grow," said Klas Forsström.
Lars Engström, heading business area Sandvik Mining and Rock Technology, underlined that growth is key for our mining and rock operations. Doing this, automation and digital solutions, as well as aftermarket sales are prioritized.
"Further growth is what we aim for in the aftermarket business by higher sales to the installed equipment base, through new or improved customer offerings," said Lars Engström and gave examples such as new e-solutions and increased productivity through data-driven predictive maintenance.
The capital markets day offered an opportunity to introduce our new head of business area Sandvik Materials Technology to the financial market. Göran Björkman's task is to restore profitability, both short- and mid-term.
"Short-term, this includes the new decentralized structure, established on July 1, and cost reductions. Mid-term, it includes new product development, operational excellence and optimization of the product mix," said Göran Björkman who also pointed out that in the product areas Powder and Kanthal, accelerated growth is key.
"We communicated that the financial performance of Sandvik has been strong, and that the profitability has been improved through own actions but also supported by a favorable market situation. This means that there are high market expectations on further result improvements during 2018," said CFO Tomas Eliasson.