Relevant GRI Indicators
Overview
Sandvik Materials Technology
2021 was a successful year for Sandvik Materials Technology with order intake recovery in all segments and strong margin resilience. Preparations are well underway to list the company’s shares on the Nasdaq Stockholm Exchange in 2022.
Sandvik Materials Technology develops and manufactures advanced stainless steels and special alloys that are lightweight, durable and corrosion-resistant and can withstand extremely high temperatures and pressures and very demanding applications. Through our products and in-depth expertise in metallurgy and industrial processes, we make customers’ processes more efficient, profitable, safer and sustainable.
The Sandvik Board of Directors announced its continued support for a separation and listing of Sandvik Materials Technology in the second or third quarter of 2022, subject to approval by Sandvik shareholders. We now have a clear direction and will utilize our market position as a technology leader and progressive customer partner to become a strong and independent company within our industry.
Market overview
Sandvik Materials Technology performed well throughout the year with positive market development and recovery in all of our segments. All of our major regions noted good order intake compared with last year. Order intake in the oil & gas and aerospace segments started to recover throughout the year but remained on lower levels compared to before the pandemic. Revenues were affected by the backlog in these two segments but were almost offset by strong development in our other customer segments. Despite this, margins demonstrated resiliant, coming in at a solid level. Both our Kanthal and Strip division showed record-high operating profit this year.
2021 in figures
Revenues by customer segment
Revenues by market area
MSEK |
2020 |
2021 |
||||
|---|---|---|---|---|---|---|
Order intake |
11,910 |
15,234 |
||||
Revenues |
13,598 |
13,405 |
||||
Adjusted EBITA1) |
1,032 |
1,548 |
||||
Adjusted EBITA margin1), % |
7.6 |
11.6 |
||||
EBIT |
492 |
1,379 |
||||
EBIT margin, % |
3.6 |
10.3 |
||||
Adjusted EBIT1) |
1,032 |
1,543 |
||||
Adjusted EBIT margin1), % |
7.6 |
11.5 |
||||
Return on capital employed, % |
3.9 |
11.3 |
||||
Number of employees2) |
5,084 |
5,465 |
||||
Gender balance (men/women), % |
81/19 |
80/20 |
||||
Women in managerial positions, % |
19.4 |
21.1 |
||||
Lost time injury frequency rate (LTIFR) |
3.9 |
3.6 |
||||
Total recordable injury frequency rate (TRIFR) |
6.7 |
8.3 |
||||
|
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Overview
Product portfolio
Tubular products, bars, billets, strip, rock drill steel, resistance material, ultra-fine medical wire and wire-based components.
Market characteristics
Selected niches in demanding industries where material requirements, as well as product quality and reliability, are extremely high. High entry barriers.
Demand drivers
- The global demand for energy and hence the demand for energy production
- The shift towards fossil-free energy and energy efficiency
- A growing and aging population with new demands on healthcare combined with technological developments in the medical sector
Competitive landscape/Major competitors
Nippon Steel (tube), Tubacex (tube), Jiuli (tube), Voest-alpine (strip), Aperam (heating elements and systems), Fort Wayne Metals (medical) smaller niche players.
Go-to-market model
About 80 percent direct sales.
Growth strategy
Materials technology is needed in many growth segments, improving efficiency, productivity and sustainability in our customers’ processes and applications. The oil and gas industry will remain a profitable segment and we have identified several other key growth segments, such as industrial heating, medical, renewable energy, chemical and petrochemical.
Strategic risk management
Fluctuating oil and gas prices. Increased competition of high-tech material from China. Local protectionism in the steel industry.