Development in business areas

On January 1, 2021, a new business area, Sandvik Rock Processing Solutions, was established, formed out of the former Crushing and Screening division. The remaining operations within Sandvik Mining and Rock Technology changed their name to Sandvik Mining and Rock Solutions. During 2021 Sandvik’s operations consisted of four business areas: Sandvik Mining and Rock Solutions, Sandvik Rock Processing Solutions, Sandvik Manufacturing and Machining Solutions, and Sandvik Materials Technology.

Sandvik Mining and Rock Solutions

Sandvik Mining and Rock Solutions is a leading supplier of equipment and tools, service and technical solutions for the mining industry and rock excavation within the infrastructure industry. Order intake for the business area amounted to SEK 47,460 million (34,832), an increase of 29 percent at fixed exchange rates for comparable units. Revenue totaled SEK 41,409 million (33,572), an increase of 16 percent at fixed exchange rates for comparable units. The EBIT margin was 19.9 percent (19.1) of revenues and the adjusted EBIT margin was 19.9 percent (20.5) of revenues. The items affecting comparability of SEK –6 million (–85) was primarily additional expenses for a provision taken in 2020.

Sandvik Rock Processing Solutions

A leading supplier of equipment, service and technical solutions for processing rock and minerals in the mining and infrastructure industries. Order intake for the business area amounted to SEK 8,524 million (6,571), an increase of 32 percent at fixed exchange rates for comparable units. Revenue totaled SEK 7,610 million (6,459), an increase of 19 percent at fixed exchange rates for comparable units. The EBIT margin was 16.5 percent (15.3) of revenues and the adjusted EBIT margin was 16.5 percent (16.1) of revenues. The items affecting comparability was SEK 0 million (–48).

Sandvik Manufacturing and Machining Solutions

Sandvik Manufacturing and Machining Solutions is a market-leading manufacturer of tools and tooling systems for advanced metal cutting, expanding into digital manufacturing and software solutions, as well as disruptive technologies like additive manufacturing and in-line metrology. Order intake for the business area amounted to SEK 37,680 million (32,677), an increase of 16 percent at fixed exchange rates for comparable units. Revenue totaled SEK 36,681 million (32,477), an increase of 14 percent at fixed exchange rates for comparable units. The EBIT margin was 22.0 percent (14.2) of revenues and the adjusted EBIT margin was 21.3 percent (18.8) of revenues. The items affecting comparability of SEK 255 million (–1,494 ) were mainly related to a capital gain from a property divestment and partial reversals of restructuring reserves.

Sandvik Materials Technology

Sandvik Materials Technology is a leading developer and manufacturer of advanced stainless steels, powder-based alloys and special alloys for the most demanding industries. Order intake for the business area amounted to SEK 15,234 million (11,910), an increase of 25 percent at fixed exchange rates for comparable units. Revenue totaled SEK 13,405 million (13,598), down –4 percent at fixed exchange rates for comparable units. The EBIT margin was 10.3 percent (3.6) of revenues and the adjusted EBIT margin was 11.5 percent (7.6) of revenues. The items affecting comparability of SEK –164 million (–540) were primarily related to the internal separation of Sandvik Materials Technology, offset by partial provision releases of structural and volume related savings measures taken in 2020.