Sandvik Group Corporate Presentation Regular · Sandvik’s objective is zero harm to our people, the environment we work in, our customers and our suppliers. SAFETY FIRST. PROTECTIVE

Sandvik’s objective is zero harm to our people, the environment we work in, our customers and our suppliers.

SAFETY FIRST

PROTECTIVE EQUIPMENT

ASSEMBLYPOINT

EMERGENCYEXIT

EMERGENCYNUMBER

ALARMFIRST AID KIT

WELCOME TO A COMPANYDRIVEN BY EXPERTISE AND IMAGINATION

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WORLD-LEADING POSITIONSIN THE FOLLOWING AREAS

METAL CUTTING MINING AND ROCK TECHNOLOGY

ADVANCED MATERIAL KNOWLEDGE

7,300ACTIVE PATENTS ANDOTHER IP* RIGHTS

3.5 BILLION SEKANNUAL R&D INVESTMENT

150COUNTRIES AROUND THE GLOBE

SALES IN OVER 43,000EMPLOYEES

BILLION SEKINVOICED SALES91

50R&D CENTERS GLOBALLY

Figures refer to Group total 2017

BUSINESS AREAS – OUR PORTFOLIO

15%

5%

39%

55%

40%

37%

5

Share of revenues 2017

Share of adjusted operating profit 2017

Other operations (non-strategic assets) contributed by 6% to revenues

and by 3% to adjusted operating profit

SANDVIK MACHINING SOLUTIONS

SANDVIK MATERIALS TECHNOLOGY

SANDVIK MINING AND ROCK TECHNOLOGY

REVENUES BY MARKET AREASHARE OF GROUP TOTAL 2017

AUSTRALIA

6%AFRICA/MIDDLE EAST

9%SOUTH AMERICA

5%

NORTH AMERICA

21%EUROPE

39%ASIA

20%

Figures refer to Group total 2017 excl. Sandvik Mining Systems

MINING

31%

ENHANCING PRODUCTIVITY, PROFITABILITY AND SAFETY

AUTOMOTIVE

13%

ENERGY

11%

ENGINEERING

24%

11%

AEROSPACE

6%

OTHER

4%

CONSTRUCTION

Share of Group total 2017 revenues by customer segment.

LEADING PRODUCTSFOR ENGINEERING

THREADING TOOLS

SHOULDER MILLING TOOLS

EXTERNAL TURNING TOOLS

HOLEMAKING TOOLS

APPLICATIONS FOR THE ENERGY SEGMENT

OFFSHORE AND ONSHORE OIL AND GAS EXPLORATION AND PRODUCTION

RENEWABLE ENERGY

NUCLEAR POWER GENERATION

LEADING PRODUCTS FOR THE AUTOMOTIVE INDUSTRY

METAL-CUTTING TOOLS

COMPRESSOR VALVE STEEL

METAL POWDERS

GASOLINE DIRECT INJECTION TUBES

METAL-CUTTING TOOLS

LEADING PRODUCTS FOR THE AEROSPACE INDUSTRY

MILLING AND METAL-CUTTING TOOLS

TEMPERATURE SENSING THERMOCOUPLES

DRILLING TOOLS

MILLING TOOLS

STAINLESS STEEL AND TITANIUM TUBES

MILLING TOOLS

APPLICATIONS FOR THE MINING INDUSTRYROCK EXCAVATION & PROCESSINGOur offering covers rock drilling, cutting and crushing, loading and hauling equipment and Mine Automation Systems, from single equipment to full fleet control. All supported by round-the-clock service and technical expertise.

DRILLING LOADING AND HAULING

CRUSHING AND SCREENING

AUTOMATION AND MONITORING

APPLICATIONSFOR CONSTRUCTION

BREAKING

CRUSHING AND SCREENING

SERVICES

TUNNELING

TO BIG TRUCKS

FROM NANOTECHNOLOGY

FROM UNDERGROUND MINES

TO AIR-DRIVEN ENERGY

OUR ROOTS GIVE US WINGSDRIVEN BY CUSTOMER VALUE FROM THE START

TODAY

1862

CUSTOMER FOCUSINNOVATIONFAIR PLAYPASSION TO WIN

OUR VISION:

It is our guiding principle. We set the industry standard means that we strive for nothing less than being number one – in the eyes of our customers.

WE SET THEINDUSTRY STANDARD

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SUSTAINABLE BUSINESS

OUR STRATEGIC AGENDA

FOCUS ON CORE AND BE No 1 OR 2 IN CHOSEN MARKETS ANDSEGMENTS

WE SET THE INDUSTRY STANDARD

SHAREHOLDERVALUE

CUSTOMERVALUE

EMPLOYEEVALUE

EXCEPTIONAL PEOPLE

TECHNOLOGY LEADERSHIP AND INNOVATION

STABILITY AND PROFITABILITY BEFORE GROWTH

ACCOUNTABILITY AND DECISIONS CLOSE TO CUSTOMERS

EFFICIENCY AND CONTINUOUS IMPROVEMENTS

CULTURE OF DOING THINGS RIGHT

OUR OPERATIONSThe impact of our operations - everything we

do to produce products and services

CONDUCTING SUSTAINABLE BUSINESS

PEOPLEENVIRONMENTALFOOTPRINT

PARTNERSGOVERNANCEUSE, REUSE& RECYCLE

ENVIRONMENTALIMPACT

HEALTH & SAFETY

INNOVATION & PRODUCTIVITY

OUR OFFERINGSThe impact occurs outside of our operations

TWO IMPACT AREAS – EIGHT DIMENSIONS

GLOBAL R&D LEADER

50R&DCENTERS

2,600EMPLOYEESGLOBALLY

3.5BILLION SEKINTO R&D EACH YEAR

7,300ACTIVE PATENTS AND OTHER IP* RIGHTS

NORTHAMERICA

SOUTHAMERICA

ASIA

AUSTRALIA

EUROPE

*Intellectual property

CUSTOMERS’ REALITY– OUR SOURCE FOR INNOVATION

COST EFFICIENCY

SAFETY FEATURES

DIGITAL OFFERING & SERVICES

SAFETY FOR ALL WORKPLACES

– Vision: Zero workplace accidents

– Meeting customers’ requirements

– Preventative measures and effortsto change the corporate culture

– Sandvik Group LTIFR* 2017 declined to 1.6, the lowest in Sandvik’s history

OUR TOP PRIORITY

*Lost Time Injury Frequency Rate

WE ARE BUILDING FOR TOMORROW

INTELLIGENT TOOLS

DIGITAL CUSTOMER INTERFACE

MY PAGES

MONITORING & AUTOMATION

TDM CLOUD LINE

COROPLUS® TOOL LIBRARY

DIGITALIZED PROCESSES

DIGITALOFFERING

AND SERVICE

INDUSTRY

4.0

CUSTOMERS’ PRODUCTIVITY– OUR PASSION

MONITORING EQUIPMENT

EXPERTISE & SERVICE PARTNERSHIP

OUR EFFICIENCY ADDS CUSTOMER VALUE

SERVICES TO OPTIMISE OPERATIONS

HIGH PACE FOR NEW PRODUCTS AND SOLUTIONS

LEAN PROCESSES THROUGHOUT THE COMPANY

PRODUCTIVITY EXPERTSWe help to increase our customers’ productivity. Sandvik Coromantprovides productivity training to 30,000 people annually.

CUSTOMERS' RESOURCES– OUR BUSINESS

ENERGY EFFICIENCY

REDUCING CARBON

FOOTPRINTRECYCLING

EVOLVING MATERIALS TO SUSTAIN THE WORLD

CUSTOMER REALITY:Find smarter ways to use energy resources and new ways to become more energy efficient.

OUR SOLUTION: Materials expertise to make industrial processes safer and more energy efficient, yielding greater output while consuming fewer resources.

YOUR WASTE PROBLEM– OUR RECYCLING SOLUTION

WE ARE WORLD-LEADING INRECYCLING CEMENTED CARBIDE

- Raw materials are scarce and finite

- Making tools from recycled solid carbide:- requires 70% less energy - means 40% less CO2 is emitted

- Secure source of a conflict mineral

A PERFORMING CULTURE

SKILLED PEOPLE ENABLE YOUR BUSINESS

GLOBAL GRADUATE PROGRAM

LEADERSHIP PROGRAMS

APPRENTICETRAININGS

CAREER PATHS

GROUP EXECUTIVE MANAGEMENT

WOMEN

AGE-SPREAD

TOTAL WORKFORCE 2017

WOMEN MEN

25%

40-59

CREATING VALUE FROM DIVERSITY

19%

81%

SHARE OF WOMEN IN MANAGERIAL POSITIONS

17.1%TALENT POOL

27% 20%

NON-EUROPEANS IN PRODUCT AREA MANAGEMENT TEAMS

19%

LIVING OUR CODES OF CONDUCT

FAIR, RESPECTFUL, TRUSTED

Sandvik stands for a strong commitment to ethical and responsible business practices.

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AMPLIFYING YOUR POSSIBILITIES

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