Relevant GRI Indicators
Overview
Sandvik Mining and Rock Solutions
Sandvik Mining and Rock Solutions had a strong year with high order intake, including the highest ever for battery-electric vehicles. The acquisitions of DSI Underground and Deswik will further strengthen our market position and expand our offering into mine planning and ground support.
Sandvik Mining and Rock Solutions brings value to customers through products and services that increase productivity, safety and uptime, while cutting costs. Our portfolio includes equipment such as drill rigs, underground loaders and trucks, rock drills and other tools, parts and services, as well as digital and sustainability-driven solutions for the mining and infrastructure industries. Around 90 percent of our sales are within mining and the aftermarket accounts for 63 percent of our business. Sandvik is the industry leader for automated loading and hauling systems in underground mines and we are focusing our growth on surface mining as well. When it comes to the transition to electrification in mining, we are clearly driving the industry shift.
Market overview
2021 was a year characterized by a strong market with good underlying demand across the globe and favorable margins. Commodity prices were high and the market more bullish compared to the previous year. We are well positioned when it comes to commodity exposure – many of our customers extract gold and electrification metals, for example – and we anticipate that demand for the commodities to which we are exposed will be strong going forward.
During the year, customers invested across the value chain, both in new equipment and in aftermarket solutions. There was significant interest in our electric mining equipment, with several notable orders.
2021 in figures
Commodity exposure
Revenues by market area
MSEK |
20201) |
2021 |
||||||
|---|---|---|---|---|---|---|---|---|
Order intake |
34,832 |
47,460 |
||||||
Revenues |
33,572 |
41,409 |
||||||
Adjusted EBITA2) |
7,018 |
8,659 |
||||||
Adjusted EBITA margin2), % |
20.9 |
20.9 |
||||||
EBIT |
6,400 |
8,220 |
||||||
EBIT margin, % |
19.1 |
19.9 |
||||||
Adjusted EBIT2) |
6,885 |
8,227 |
||||||
Adjusted EBIT margin2), % |
20.5 |
19.9 |
||||||
Return on capital employed, % |
29.2 |
31.2 |
||||||
Number of employees3) |
12,442 |
15,574 |
||||||
Gender balance (men/women), % |
84/16 |
82/18 |
||||||
Women in managerial positions, % |
17.8 |
19.4 |
||||||
Lost time injury frequency rate (LTIFR) |
0.8 |
1.2 |
||||||
Total recordable injury frequency rate (TRIFR) |
3.0 |
3.6 |
||||||
|
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Overview
Product portfolio
Equipment for drilling, cutting, loading and hauling. Drilling consumables (rock tools), service, spare and wear parts.
Market characteristics
Mining:
Consolidated customer base of some 200 global major and junior miners. Remote locations, decreasing ore grades as well as safety requirements drive volume output and need for semiautomated to fully automated solutions. Significant aftermarket business.
Infrastructure:
Sandvik is active in the niche area of rock excavation. The customer base is fragmented with more than 25,000 individual customers. Localized offering and local competition.
Demand drivers
Mining:
- GDP growth rate and resource-intensive industry development
- A growing middle class
- Metal and mineral prices
- Production levels in existing mines and expansion projects (greenfield and brownfield)
- Productivity improvements and new technology, for example automation and electrification
- Demand in the areas of environment, health and safety
Infrastructure:
- GDP growth/urbanization
- Infrastructure investments and spending
- Government stimulus programs
- Aggregates production
- Cement consumption
Competitive landscape/Major competitors
Mining:
Mainly global competitors such as Epiroc, Caterpillar and Komatsu Mining.
Infrastructure:
Some global competitors present in several niches: Epiroc, Caterpillar and Furukawa. Many local players.
Go-to-market model
Mining:
Direct sales approximately 95 percent with worldwide service network.
Infrastructure:
Due to a fragmented customer base, 50 percent of sales is via distributors. Global sales and service organization.
Growth strategy
Grow aftermarket business on the installed base. Expand market share in surface drilling. Climb the service ladder by data-driven productivity and advanced services. Automation, electrification and exploring complementary technologies and offerings through mergers and acquisitions.
Strategic risk management
Various forms of business environment risk with an impact on the mining and infrastructure market in general, such as increased market competition with new technological developments and the emergence of new competitors, fluctuations in commodity prices and compliance-related risks. Political uncertainty in some parts of the world.