Sandvik

Annual Report • Jan 23, 2025

Interim report fourth quarter and full year 2024

Stable performance and solid order intake growth

• Total order intake increased by 5% compared to last year and amounted to SEK 31,562 million (30,062). At fixed exchange rates, orders grew by 5%, and organically by 4%
• Total revenues increased by 1% compared to last year and amounted to SEK 32,151 million (31,816). At fixed exchange rates, revenues grew by 1%, of which organic development was flat
• Adjusted EBITA increased by 1% and amounted to SEK 6,288 million (6,211), corresponding to a margin of 19.6% (19.5). Items affecting comparability amounted to SEK 5 million (191), mainly related to M&A
• Profit for the period amounted to SEK 4,297 million (4,259) and earnings per share, diluted, were SEK 3.42 (3.39). Adjusted earnings per share, diluted, were SEK 3.25 (3.22)2, 3)
• Free operating cash flow amounted to SEK 6,463 (5,463)
• The Board of Directors proposes a dividend of SEK 5.75 per share (5.50)

1%

Revenue growth at fixed exchange rates

Adj. EBITA margin 19.6%

1.2

Financial net debt/EBITDA

Financial overview

MSEK	Q4 2023	Q4 2024	Change %	Q1-Q4 2023	Q1-Q4 2024	Change %
Order intake	30,062	31,562	5	125,011	124,694	0
Revenues	31,816	32,151	1	126,503	122,878	-3
Adjusted EBITA1)	6,211	6,288	1	25,240	23,583	-7
Adjusted EBITA margin	19.5	19.6	–	20.0	19.2	–
Adjusted EBIT2)	5,738	5,741	0	23,300	21,635	-7
Adjusted EBIT margin	18.0	17.9	–	18.4	17.6	–
Adjusted profit before tax2, 3)	5,107	5,377	5	20,677	19,675	-5
Profit for the period	4,259	4,297	1	15,301	12,245	-20
Adjusted profit for the period2, 3)	4,047	4,084	1	15,935	14,950	-6
Earnings per share, diluted, SEK	3.39	3.42	1	12.18	9.75	-20
Adjusted earnings per share, diluted, SEK2, 3)	3.22	3.25	1	12.69	11.90	-6
Free operating cash flow	5,463	6,463	18	19,582	21,194	8

1) Adjusted for items affecting comparability (IAC) on EBITA of SEK 5 million (191) in Q4 2024 and SEK -3,090 million (-710) YTD 2024. 2) IAC on EBIT of SEK 5 million (191) in Q4 2024 and YTD SEK -3,214 million (-882) . 3) Adjusted for IAC regarding tax of SEK 209 million (21) in Q4 2024 and SEK 509 million (248) YTD 2024. For full details on IAC, see page 20.

Tables and calculations in the report do not always agree exactly with the totals due to rounding. Alternative performance measures and definitions used in this report are explained on page 22. For more information see home.sandvik.

Q1 SANDVIK INTERIM REPORT 2023

We had a strong start to 2023. With good momentum and solid business execution we delivered double-digit revenue growth, and top line levels were on an all-time high. Our short-cycle

ments and the mining environment remained robust, with high

growth strategy with the completion of two acquisitions. Great momentum was also seen in our battery electric vehicle (BEV) business. The fact that our Digital Mining Technologies division had exceptionally strong organic order growth in the quarter is a good example of the progress we make in our strategic focus

Total order intake and revenues grew at fixed exchange rates, by 6% and 18%, respectively. Organic order intake grew by 2% and revenues by 13%, despite tough comparables. If we exclude Russia, organic orders and revenues grew by 5% and 16%, respectively. Adjusted EBITA margin was 19.8%, with

price compensating for cost inflation, but currency effects from

impact of 100 basis points. Free operating cash flow amounted

revaluation on unhedged balance sheet items had a dilutive

Order intake levels in Sandvik Mining and Rock Solutions did once again beat previous records. We noted particularly strong growth in our biggest equipment division, Load and Haul, and the aftermarket division Parts and Services. Order intake, at fixed exchange rates, and excluding Russia, grew by 8%, of which 6% organic. The shift to battery electric vehicles (BEVs) accelerated further. We announced several BEV orders in the quarter, including two of our three biggest BEV orders ever. To support the growing BEV market, Sandvik announced the investment in a new production site in Malaysia. We plan to get production started by the end of the year. We also won an order

from the world's largest copper producer, to supply an Auto-Mine® Fleet automation system with six autonomous loaders. Revenues, at fixed exchange rates, and excluding Russia, grew

aftermarket activity. We took additional steps in our shift to

business noted positive demand from all customer seg-

CEO'S COMMENT

areas.

to SEK 3.7 billion.

by 26%, of which 23% organic.

q

growth, and all business areas are now compensating fully for cost inflation. We continued to leverage on our leading global CEO's comment

and revenues grew by strong 19%.

areas and segments. Moving forward, we will continue to leverage on our strengths, and by doing so, create value for all our stakeholders. Stefan Widing President and CEO There is a lot to be proud of when looking back at 2024. Faced with volume deterioration in several businesses due to a weak market, we managed to achieve stable revenues and a solid margin by successfully leveraging on Sandvik's leading positions and resilient business model. Meanwhile, we consistently executed our strategy. During the year, we strengthened our growth profile by expanding into the local premium segment in China and enhanced our mining automation offering. I am especially proud of the progress we have made in increasing our digital offering, with year-end revenues in total exceeding SEK 5 billion, on track to meet our 2025 target. Financial performance for the full year was stable with an increase in total order intake, at fixed exchange rates, of 2%, and corresponding revenues declining by 1%. The operating profit margin was 19.2%, and while not within our target range, still a satisfactory level given the volume challenges. Previously announced restructuring programs are delivering according to plan and will support margins further during 2025. We also made progress in reducing inventory volume, and free operating cash flow amounted to SEK 21.2 billion (19.6), corresponding to a cash conversion of 95%.

Sandvik Rock Processing Solutions' organic orders declined year on year. The aftermarket business held up well, while the equipment business was down due to both tough comparables, and softer infrastructure demand. The integration of SP Mining is progressing well and is an important driver of the double-digit growth in the quarter. Order intake and revenue growth, at fixed exchange rates, and excluding Russia, was 20% and 43%, respectively. Organic orders, adjusting for Russia, declined by 6%,

Sandvik Manufacturing and Machining Solutions reached record order levels driven by Europe. The demand was solid from all segments, and daily order intake grew double digits in aerospace and energy. In the quarter, we acquired 95% of the shares of the Irish-based company Premier Machine Tools. The company is a well-established solutions provider to the medical machining segment – which is one of Sandvik's strategic priority areas. Order intake growth, at fixed exchange rates, excluding Russia, grew by 11% of which organic 7%. The daily order intake in the first two weeks of April was slightly up compared to

I am pleased with the performance in the quarter, with solid execution on our shift to growth strategy. We delivered strong

positions, and it is clearly visible that our broad and customer-focused offerings place us in the lead in important growth

We ended the year on a good note with total order intake, at fixed exchange rates, growing by 5% in the fourth quarter. Total revenues, at fixed exchange rates, increased by 1% and we managed to improve the adjusted EBITA margin to 19.6% (19.5). The free operating cash flow was strong, amounting to SEK 6.5 billion (5.5), corresponding to a cash conversion of 109%.

Sandvik Mining and Rock Solutions noted solid demand in the fourth quarter. Organic order intake grew by 6%. Strong momentum was noted in the aftermarket business with double-digit growth, and while equipment orders

FOR ADDITIONAL INFORMATION, PLEASE CALL SANDVIK INVESTOR RELATIONS +46 8 456 11 00 OR VISIT HOME.SANDVIK 2

were stable year on year, our equipment divisions saw a more favorable demand picture during the quarter. We made progress in strategic priority areas, with good order growth in the Rotary drilling division and we won an important deal in Peru to supply rotary and other surface drill rigs. I am also very pleased with a major order win in Chile, valued at just above SEK 400 million (only minor part booked this quarter), which included our world leading loaders and our AutoMine® solutions. Revenues reached record levels at SEK 17.3 billion, with organic growth of 3% compared to the year-earlier period. On the back of solid order momentum in previous years, revenues from our battery-electric vehicles reached an all-time high in the quarter and the year. In December, we also finalized the previously announced acquisition of Universal Field Robots (UFR), an important step in strengthening our automation platform.

"We managed to achieve stable revenues and a solid margin by successfully leveraging on Sandvik's leading positions and resilient business model."

Sandvik Rock Processing Solutions experienced solid progress in the quarter with favorable development in both mining and infrastructure segments. Organic order intake grew by 22%, driven by equipment orders, while parts and services also contributed with high single digit growth. We have seen an improved business climate in the US towards the second half of the quarter. However, while dealer stock levels in Europe have come down, demand remained subdued. I would also like to highlight key strategic achievements such as the very solid performance in our screening business, following the acquisition of SP Mining in 2022, and the strong traction for our new large 800i crusher for which we have doubled our order intake for the year, supporting our ambition to "crush more, grind less".

Sandvik Manufacturing and Machining Solutions experienced soft demand in the fourth quarter. Organic order intake declined by 3%, due to weak demand for cutting tools mainly in Europe, and in the automotive segment. I am however pleased to see that our recently established foothold in local premium in China, Suzhou Ahno, grew high single digits with favorable development in automotive and general engineering. Underlying demand for our software solutions remained robust in the US, although organic order intake was negatively impacted by automotive in Europe. Total software order intake, at fixed exchange rates, grew by mid single digits. Total order intake, at fixed exchange rates, was positive 1%. In January, we took additional steps to grow in the digital manufacturing space with the acquisition of FASTech, a US based reseller of Computer Aided Manufacturing (CAM) solutions. With this acquisition, Sandvik strengthens its position in the CAM market and further builds on its capabilities to serve customers as well as expand the customer base.

In summary, 2024 was a challenging year, with macro-economic instability impacting demand in key customer segments. Thanks to our continuous focus on building a stronger Sandvik, such as increased share of recurring revenues and value-based solutions, we have been able to keep our top line stable and delivered both a good margin and a strong free operating cash flow. We have continued to demonstrate good cost control as well as price execution, and we have introduced several important innovations and retained our world leading positions. I am confident that as the market turns, our consistent execution will yield strong results and value creation to our shareholders. Finally, I want to extend a warm thanks to all Sandvik employees for their hard work and solid contribution.

Stefan Widing President and CEO

Order intake and revenues

Growth Q4, %	Order intake	Revenues
Organic	4	0
Structure	2	1
Organic & structure	5	1
Currency	0	0
Total	5	1
Change compared to same quarter last year.

Total order intake grew by 5%, and at fixed exchange rates by 5%, of which 4% organically. Total revenues increased slightly by 1%. At fixed exchange rates, growth was 1%, of which organic 0%.

Favorable copper and gold price levels drove high mining production throughout 2024 and in the fourth quarter. Strong momentum was noted in the aftermarket business, driven by high activity in combination with older machines requiring a higher degree of maintenance. During the year, Sandvik's Digital Mining Technologies division grew at a solid pace, on the back of miners' focused ambition to improve safety and productivity in the mines. Infrastructure markets remained challenging with subdued demand, while signs of improved sentiment was noted in the fourth quarter. During the fourth quarter, Sandvik Mining and Rock Solutions noted the strongest organic order intake growth in Africa, Middle East and North America, and Sandvik Rock Processing Solutions noted strong growth in all segments but Europe.

Macro-economic instabilities and consequently low industrial activity impacted demand for cutting tools during the year, with negative development in all regions but Asia. Solid development in the powder business and software partly compensated for the year's order intake decline. During the fourth quarter, demand remained subdued with most negative development in Europe and the automotive segment followed by general engineering. Order intake in aerospace was stable in the quarter, albeit with positive underlying fundamentals. Strong momentum was noted in the local premium market in China.

Order intake and revenues

Revenue growth

Q4 Underlying market development			Mining 51%	General engineering	Infrastructure	Automotive	Aerospace	Other
			of 2024 revenues	20%	9%	6%	4%	10%
	% of 2024 Group revenue	Order intake Y/Y (excl. major orders)
Europe	26%	-2% (2%)
North America	25%	5% (8%)
Asia	18%	-6% (1%)
Africa, Middle East	12%	20% (31%)
Australia	12%	11% (9%)
South America	7%	12% (12%)

Other includes mainly energy, die and mould, electronics, medical, pump and valve, rail and defense

Earnings

Adjusted gross profit amounted to SEK 12,987 million (13,107). Adjusted gross profit margin declined to 40.4% (41.2) mainly due to underabsorption of fixed production costs. Adjusted sales and administration costs were in line with prior year at SEK 7,212 million (7,221). The ratio to revenues improved to 22.4% (22.7).

Adjusted EBITA increased by 1% to SEK 6,288 million (6,211). Adjusted EBITA margin improved to 19.6% (19.5). Negative volumes was off-set by good cost control, price execution and savings from the restructuring program. Savings from the restructuring program communicated in May 2022, amounted to SEK 177 million in the quarter, corresponding to a bridge effect of SEK 83 million. The achieved realized annualized run rate was 90% of total annualized savings of SEK 785 million. Savings from the restructuring program communicated in January 2024, amounted to SEK 242 million in the quarter, corresponding to a realized annualized run rate of 78% of total annualized savings of SEK 1.2 billion. The impact from transaction and translation exchange rates was negative SEK 71 million year on year, and dilutive to the margin by 20 basis points. Acquisitions were slightly dilutive to the margin. Items affecting comparability amounted to SEK 5 million (191).

The interest net decreased year on year to SEK -309 million (-468) due to lower borrowing volumes and lower borrowing yield. Net financial items of SEK -364 million (-630), decreased year on year.

The tax rate, excluding items affecting comparability was 24.0% (20.8). The reported tax rate was 20.1% (19.6). The normalized tax rate was 24.0% (21.7), in line with guidance.

Profit for the period amounted to SEK 4,297 million (4,259), corresponding to earnings per share, diluted, of SEK 3.42 (3.39) and adjusted earnings per share, diluted, of SEK 3.25 (3.22). Adjusted earnings per share, diluted, excluding amortization of surplus values, amounted to SEK 3.62 (3.53).

Adjusted earnings per share

Adjusted EBITA

Balance sheet and cash flow

Capital employed increased year on year and amounted to SEK 144.2 billion (137.4). The increase was driven by changed exchange rates and acquisitions. Sequentially, capital employed increased from SEK 141.3 billion mainly driven by changed exchange rates. Return on capital employed1) decreased year on year to 13.4% (16.4), and return on capital employed excluding amortization on surplus values was 14.8% (17.9).

Net working capital increased year on year to SEK 35.9 billion (35.0), with inventory volume reduction of SEK 1.3 billion, negatively off-set by changed exchange rates. Sequentially (35.9), net working capital was stable with significant reduction in inventories negatively off-set by currency. Net working capital in relation to revenues1) was 29.9% (28.9), an increase year on year, but a decrease sequentially (30.2).

Investments in tangible and intangible assets (capex) amounted to SEK 1.4 billion (1.7). The investments corresponded to 153% of depreciation.

Financial net debt decreased year on year to SEK 32.1 billion (35.2) and sequentially (37.3). The sequential decrease was due to strong cash generation in the period. The financial net debt/EBITDA ratio was 1.2 (1.2), with a decrease sequentially (1.4). Other items, such as pension and capitalized leases, had a limited effect on total net debt. Total net debt of SEK 41.1 billion (43.5) decreased year over year and sequentially (46.1).

Free operating cash flow increased year on year to SEK 6.5 billion (5.5) driven by higher results, lower capex spend and improved net working capital.

1) New calculation from Q2, 2024, comparative figures have been updated accordingly, see Definitions of alternative performance measures on page 22.

Free operating cash flow, MSEK	Q4 2023	Q4 2024
EBITDA	7,717	7,736
Non-cash and other items1)	-1,595	-1,084
EBITDA adj for non-cash and other items	6,123	6,651
Capex	-1,698	-1,366
Net working capital change	1,039	1,178
Free operating cash flow	5,463	6,463

1) Other items include rental fleet, lease payments and proceeds from sale of assets.

Financial net debt/EBITDA

*2022 has been adjusted to exclude Alleima for net working capital and free operating cash flow.

Sandvik Mining and Rock Solutions

• Double-digit growth in the aftermarket business
• Record revenue quarter
• Strong margin performance

Growth Q4, %	Order intake	Revenues
Organic	6	3
Structure	0	0
Organic & structure	6	3
Currency	-1	0
Total	5	2

140

Change compared to same quarter last year.

Order intake and revenues

• Solid demand in mining, with positive momentum in the aftermarket business
• Strong organic order intake growth, with double-digit growth in aftermarket and stable order levels for equipment
• Important orders received in key strategic areas such as surface and automation solutions
• Total order intake increased by 5%. At fixed exchange rates, order intake grew by 6%, of which organic 6%
• No major orders were booked in the fourth quarter. Excluding major orders in the year earlier period (1,150), organic order intake increased by 15%
• All regions except Asia had positive organic order intake development. Strongest growth was seen in Africa, Middle East with growth of 21%, followed by North America at 10% and South America at 7%
• Organic order intake for aftermarket increased by 10%, while equipment orders declined by 1% year on year
• The aftermarket business accounted for 65% (64) of revenues while the equipment business accounted for 35% (36)

Adjusted EBITA

• The adjusted EBITA amounted to SEK 3,721 million (3,472), corresponding to a margin of 21.5% (20.6), with pricing off-setting cost inflation and positive impact from savings
• Savings from the 2022 restructuring program had a positive impact of SEK 20 million, corresponding to a bridge effect of SEK 10 million. Savings from the 2024 restructuring program had a positive bridge effect of SEK 73 million
• Structure had a slightly positive impact to the margin
• Exchange rates had a negative impact of SEK 16 million year on year but was neutral to the margin

Shift to growth

During the quarter Sandvik introduced several new innovations, amongst others the MD/MDX Peg Bolt and the industry's most advanced intelligent narrow-vein underground drill, DD212i. The new bolt provides easy visible and lasting indication of correct and complete installation which enhances safety.

During the quarter, Sandvik received a major order to supply loaders and AutoMine® solutions, valued at just above SEK 400 million.* Furthermore, Sandvik secured an important order in Peru for a number of rotary and other surface drill rigs.

Sandvik also finalized the previously announced acquisition of Universal Field Robots (UFR), a fast-growing, Australia-based provider of autonomous interoperable solutions for both surface and underground mining markets.

*Of which SEK 60 million recognized in the quarter.

Financial overview, MSEK	Q4 2023	Q4 2024	Change %	Q1-Q4 2023	Q1-Q4 2024	Change %
Order intake	15,661	16,518	5	64,527	64,404	0
Revenues	16,894	17,306	2	65,690	63,607	-3
Adjusted EBITA1)	3,472	3,721	7	13,716	12,950	-6
Adjusted EBITA margin	20.6	21.5	–	20.9	20.4	–
Number of employees 2)	17,019	17,278	2	17,019	17,278	2

1) EBITA adjusted for items affecting comparability of SEK 60 million in Q4 2024 (246) and YTD 2024 the impact was SEK -507 million (67). For more information see page 20. 2) Full-time equivalent.

SEK bn Percent

Order intake, revenues and book-to-bill

21

Sandvik Rock Processing Solutions

• Strong organic order intake growth and stable revenues
• Solid performance in the screening business
• Improving sentiment in infrastructure in the US

Growth Q4, %	Order intake	Revenues
Organic	22	0
Structure	0	0
Organic & structure	22	0
Currency	0	0
Total	22	0

Change compared to same quarter last year.

Order intake and revenues

• Underlying demand in mining remained stable with solid contribution from the screening business, and improved sentiment in infrastructure
• Strong organic order intake growth on easier comparables – Total order intake increased by 22%. At fixed exchange rates, order intake increased by 22%, of which organic was 22%
• Three major orders received, two in mining and one in infrastructure, totaling SEK 188 million (171). Excluding major orders, organic order intake grew by 23%
• Organic order intake for equipment increased by 51% while aftermarket increased by 7%
• Strongest organic order intake growth was reported in Australia at 72% followed by North America at 40%, South America at 30% and Africa, Middle East at 28%. Europe declined by 24%
• The aftermarket business accounted for 60% (61) of revenues while the equipment business accounted for 40% (39)

Adjusted EBITA

• The adjusted EBITA amounted to SEK 409 million (440), corresponding to a margin of 14.6% (15.7). Price pressure in infrastructure and provision for obsolescence impacted the margin negatively. Volumes improved slightly year on year, but from low levels
• Savings from the 2022 restructuring program had a positive impact of SEK 34 million, corresponding to a bridge effect of SEK 12 million. Savings from the 2024 restructuring program had a positive bridge effect of SEK 21 million
• Exchange rates had a negative impact of SEK 10 million year on year, and had a negative effect of 30 basis points

Shift to growth

Innovation and product development are key to Sandvik's organic growth. Early in 2024 Sandvik launched an upgraded version of the large 800i cone crusher series which enables processing higher volumes and obtaining finer particle sizes. The year was concluded with a doubled order intake of this model and thus successfully advancing in our strategic priority to leverage our technology to reduce energy consumption in mining.

During the quarter, and year, Sandvik's screening solutions has delivered solid performance. When acquiring SP Mining in 2022 the strategic ambition was to grow in the downstream mining business. Two years post the acquisition the organization has been successful in these efforts and delivered high growth and a strong operational performance.

Adjusted EBITA

Financial overview, MSEK	Q4 2023	Q4 2024	Change %	Q1-Q4 2023	Q1-Q4 2024	Change %
Order intake	2,248	2,735	22	11,238	11,103	-1
Revenues	2,807	2,803	0	11,472	10,704	-7
Adjusted EBITA1)	440	409	-7	1,661	1,562	-6
Adjusted EBITA margin	15.7	14.6	–	14.5	14.6	–
Number of employees 2)	2,946	2,739	-7	2,946	2,739	-7

1) EBITA adjusted for items affecting comparability of SEK -4 million in Q4 2024 (11) and YTD 2024 the impact was SEK -411 million (-144). For more information see page 20. 2) Full-time equivalent.

• Weak cutting tools demand mainly in Europe and automotive
• Strong order growth in Suzhou Ahno, China
• Strong execution on restructuring initiatives

Growth Q4, %	Order intake Revenues
Organic	-3	-4
Structure	4	3
Organic & structure	1	0
Currency	0	0
Total	1	-1

Change compared to same quarter last year.

Order intake and revenues

• Weaker demand in cutting tools, mainly in Europe and in automotive, partly compensated by solid order intake in the powder business. High single digits growth in local premium market in China
• Stable demand in aerospace with positive development in Europe off-set by temporary weaknesses in North America
• Organic order intake for cutting tools declined by mid single digits. Demand for software solutions was mixed, solid in US, while negatively impacted by automotive in Europe
• Total order intake increased by 1%. At fixed exchange rates, order intake increased by 1%, of which organic -3%
• Organic order intake declined by 5% in North America and by 3% in Europe. Asia decreased by 1%
• The number of working days had a +1% impact on orders and revenues
• Daily order intake in the first two weeks of January was stable compared to the fourth quarter of 2024, taking normal seasonality into account

Adjusted EBITA

• The adjusted EBITA amounted to SEK 2,340 million (2,453), corresponding to a margin of 19.4% (20.2)
• Good price realization in combination with strong cost control and execution of restructuring initiatives compensated for declining volumes
• Acquisitions had a dilutive effect on the margin of 40 basis points, partly driven by investments into a new inserts factory in China
• Savings from the 2022 restructuring program had a positive impact of SEK 122 million, corresponding to a bridge effect of SEK 60 million. Savings from the 2024 restructuring program had a positive bridge effect of SEK 147 million
• Exchange rates had a negative impact of SEK 41 million year on year, corresponding to a dilution of 30 basis points

Shift to growth

Sandvik has established a stronger position in the local premium market in China through the acquisition of Suzhou Ahno. In the fourth quarter, the business recorded high single digit growth and saw positive development in key segments such as automotive and general engineering. Sandvik is also investing in a new inserts factory in China, to strengthen the offering towards the local premium market.

Post the quarter, Sandvik completed the acquisition of FASTech, a US based reseller of Computer Aided Manufacturing (CAM) solutions. The acquisition will support further growth in the digital manufacturing space through a stronger position in the software market and the opportunity to expand the offerings to FASTech's customer base.

Order intake, revenues and book-to-bill

Financial overview, MSEK	Q4 2023	Q4 2024	Change %	Q1-Q4 2023	Q1-Q4 2024	Change %
Order intake	12,154	12,309	1	49,247	49,187	0
Revenues	12,114	12,041	-1	49,340	48,567	-2
Adjusted EBITA1)	2,453	2,340	-5	10,597	9,718	-8
Adjusted EBITA margin	20.2	19.4	–	21.5	20.0	–
Number of employees 2)	20,326	20,801	2	20,326	20,801	2

1) EBITA adjusted for items affecting comparability of SEK -55 million in Q4 2024 (-66) and YTD 2024 the impact was SEK -2,104 million (-552). For more information see page 20. 2) Full-time equivalent

• Positive development in TRIFR
• Life cycle assessments pilot program
• Roll-out of a global parental leave benefit

During the quarter

The Total Recordable Injury Frequency Rate (TRIFR) developed favorably to 3.0 (3.2) and Lost Time Injury Frequency Rate (LTIFR) remained stable at 1.2, compared to the same period last year.

Greenhouse gas emissions increased by 17%, compared to the same period last year, driven by acquisitions gradually being integrated into the Sandvik environmental reporting.

Sandvik has rolled out a new gender-neutral parental leave benefit that enables employees around the world to take 14 weeks of paid leave. This is expected to positively impact Sandvik's employee health and wellbeing, drive engagement, as well as retain and attract talent.

Fourth quarter

• TRIFR improved to 3.0 (3.2) compared to the same period last year
• LTIFR remained stable at 1.2 (1.2) compared to the same period last year
• Greenhouse gas emissions (GHG) amounted to 40.8 kton (35.0) in the quarter
• The share of circular waste decreased to 72% (73)
• The share of female managers was stable at 20.5% (20.5)

Supporting customers' environmentally conscious decisions

During 2024, Sandvik launched the development of Life Cycle Assessment (LCA) for our cutting tool products within the Seco Tools division. The motivation for the project was to meet sustainability goals as well as supporting customers in making environmentally conscious decisions. LCA systematically evaluates the environmental impact of products across their life cycle, from raw material extraction to disposal. The LCA analysis enables internal improvements and customer transparency. In December, the success of the pilot was announced along with progression plans for 2025. Next step is to expand the LCA coverage to include more of its portfolio and enhance the customer experience by adding more sustainability data measurements and providing a centralized space for easy access to information.

Safety

Share of female managers

Female Managers (number of)
Share of Female Managers (%)

Sustainability overview	Q4 2023	Q4 2024	Change %	R12M
Total waste, thousand tonnes 1)	17.7	17.3	-2	69.9
Waste circularity, % of total	73.1	72.3	-1	73.7
Total CO2, thousand tonnes 1)	35.0	40.8	17	147.8
Total recordable injury frequency rate, R12M frequency / million working hours	3.2	3.0	-7	3.0
Lost time injury frequency rate, R12M frequency / million working hours	1.2	1.2	–	1.2
Share of female managers, %	20.5	20.5	–	20.5

1) Excluding tailings, digestion sludge, foundry sand and slag to disposal. For definitions see home.sandvik

For additional information, please call Sandvik Investor Relations +46 8 456 11 00 or visit home.sandvik 9

Acquisitions and divestments

Acquisitions during last 12 months

Business area	Company/unit	Acquisition date	Revenues	No. of employees
2024
Sandvik Manufacturing and Machining Solutions	pro-micron GmbH	February 1, 2024	88 MSEK in 2022	56
Sandvik Manufacturing and Machining Solutions	Cimquest, Inc.	March 1, 2024	26 MUSD in 2023	55
Sandvik Manufacturing and Machining Solutions	Almü Präzisions-Werkzeug GmbH	May 1, 2024	7.1 MEUR* in 2023	44
Sandvik Manufacturing and Machining Solutions	PDQ Workholding LLC	June 1, 2024	36 MUSD in 2023	107
Sandvik Manufacturing and Machining Solutions	Suzhou Ahno Precision Cutting Tool Technology Co., Ltd.	July 1, 2024	1.2 BSEK in 2023	1,200
Sandvik Mining and Rock Solutions	Universal Field Robots	December 2, 2024	80 MSEK 12M Q3 '23-Q2'24	40

*Of which EUR 1.7 million refers to sales to Sandvik.

The acquisitions were made through the purchase of 100% of shares and voting rights except for Suzhou Ahno, where Sandvik acquired 60% of the shares.

Sandvik received control over the operations on the date of closing. No equity instruments have been issued in connection with the acquisitions. The acquisitions have been accounted for using the acquisition method.

Contributions from business acquired in 2024, MSEK

Contributions as of acquisition date
Revenues	1,086
Profit/loss for the year	-79
Contributions if the acquisition date would have been January 1, 2024

Revenues	1,978
Profit/loss for the year	13

Fair value recognized in the Group 20241), MSEK	Suzhou Ahno
Intangible assets	9
Property, plant and equipment	821
Right-of-use assets	106
Other non-current assets	–
Inventories	264
Receivables	795
Other current assets	–
Cash and cash equivalents	182
Interest bearing loans and borrowings	-527
Other liabilities and provisions	-491
Deferred tax assets/liabilities, net	-189
Net identifiable assets and liabilities	971
Goodwill	1,205
Other surplus values	1,356
Purchase consideration	-3,532
Whereof previously acquired non-controlling interest	493
External liability to minority shareholders	1,096
Cash and cash equivalents in the acquired business	182
Net cash outflow	-1,761

1) The purchase price allocation is preliminary
-------------------------------------------------

MSEK	Purchase price on cash	Preliminary	Preliminary other
	and debt free basis	goodwill	surplus values
Acquisitions 2024	4,970	1,880	1,949

In July, Sandvik Manufacturing and Machining Solutions acquired a majority stake in the leading China-based company Suzhou Ahno Precision Cutting Tool Technology Co., Ltd. (Ahno) from the majority owner, Ningbo Baosi Energy Equipment Co., Ltd and related parties. Prior to the acquisition, Sandvik owned a minority stake of 12% and thus, Sandvik owns a majority stake of 72% post acquisition, as well as call and put options of the remaining 28%. The remaining shares are expected to be acquired during 2025.

Ahno has a leading position in precision cutting tools in the fast-growing local premium segment, with a broad product-and service offering and extensive sales, distribution and production footprint in China. With this acquisition Sandvik Machining Solutions further strengthens its leading position within round tools.

Ahno was founded in 2002, has 1,200 employees and is headquartered in Suzhou, China. In 2023, the company generated revenues of approximately CNY 812 million (SEK 1.2 billion), mainly from China. Preliminary goodwill of SEK 1,205 million and other surplus values of SEK 1,356 million was recorded on the purchase. The impact on Sandvik's EBITA margin will be limited. The impact on Sandvik's earnings per share (excluding non-cash amortization effects from business combinations) will be positive.

Divestments during last 12 months

In August, Sandvik Manufacturing Solutions divested the engineerto-order business of DWFritz, following the communicated intention to exit non-strategic businesses. The divestment incurred a capital loss, including transactional costs, of SEK 248 million in the third quarter of 2024 and had a negative cash flow effect on the Group of SEK 30 million. Sandvik acquired DWFritz in 2021, with the intention to grow the ZeroTouch® business of DWFritz. The ZeroTouch® business is not part of the divestment, and will remain a part of Sandvik.

Significant events

During the fourth quarter

• On December 2, Sandvik announced the completion of the acquisition of Universal Field Robots (UFR). The company will be reported in Digital Mining Technologies, a division within business area Sandvik Mining and Rock Solutions.
• On December 12, Sandvik announced that Björn Axelsson is appointed as Executive Vice President and Head of Human Resources, replacing Johan Kerstell, effective February 1, 2025.

After the fourth quarter

• On January 3, 2025, Sandvik acquired the assets of FASTech, a US based reseller of Computer Aided Manufacturing (CAM) solutions in the Mastercam network. FASTech will be a part of business unit Mastercam and will be reported within the business area Sandvik Manufacturing and Machining Solutions.
• On January 10, 2025, Sandvik announced that Åsa Thunman, Executive Vice President and General Counsel of Sandvik has decided to leave Sandvik for a corresponding position at Skanska. She will leave Sandvik no later than July 8, 2025. The recruitment process to find a successor is under way.

Full year 2024

During 2024, Sandvik has seen a mixed demand picture, with regional variations as well as between key customer segments. Demand in mining was stable on a high level, with strong momentum in the aftermarket compensating for lower mining equipment investments. On the back of geo-political and macro-economic uncertainties, the infrastructure market remained challenging throughout the year, with declining demand in all regions. Lower industrial activity and specific challenges in automotive led to a decline in demand for cutting tools, most notable in Europe. Demand in aerospace was slightly subdued, mainly due to temporary issues in North America during second half of the year. Powder business developed strongly during the year, and Sandvik's software solutions grew mid to high single digits. Group volumes were down year on year, partly compensated by good price execution and cost control.

Total order intake was in line with last year but increased 2% at fixed exchange rates, of which organic development was 1%. Total revenues declined by 3%, and at fixed exchange rates by 1%, of which organic was -2%.

Adjusted EBITA declined by 7% year on year to SEK 23,583 million (25,240) and the adjusted EBITA margin was 19.2%

(20.0). The reported EBITA declined by 16% to SEK 20,493 million (24,530) resulting in a margin of 16.7% (19.4), the decrease in EBITA is mainly related to cost taken in the first quarter for the restructuring program launched in January, 2024.

Net financial items amounted to SEK -1,959 million (-2,623) and profit before tax was SEK 16,461 million (19,794). The tax rate, excluding items affecting comparability, was 24.0% (22.9) The reported tax rate was 25.6% (22.7). The normalized tax rate was 24.0% (23.4), in line with guidance.

Profit for the period amounted to SEK 12,245 million (15,301). Earnings per share, diluted amounted to SEK 9.75 (12.18). The financial net debt decreased year-on-year to SEK 32.1 billion (35.2) resulting in a financial net debt to EBITDA ratio of 1.2 (1.2).

During the year six acquisitions were completed. Sandvik acquired pro-micron GmbH, Cimquest Inc., Almü Präzisions-Werkzeug GmbH, PDQ Workholding LLC, Suzhou Ahno Precision Cutting Tool Technology Co., Ltd. and Universal Field Robots. Sandvik also divested the engineer-to-order business of DWFritz, in line with the intention to exit non-strategic businesses.

Guidance and financial targets

Sandvik does not provide a market outlook or business performance forecasts. However, guidance relating to certain non-operational key figures considered useful when modeling financial outcome is provided in the table below:

Capex (cash)	Estimated at approx. SEK 5.0 billion for 2025.
Currency effects	Based on currency rates at the end of December 2024, it is estimated that transaction and translation currency effects will have an impact of about SEK +300 million on EBITA for the first quarter of 2025, compared with the year-earlier period.
Interest net	Estimated at approximately SEK -0.8 billion in 2025.
Tax rate	Estimated at 23-25% for 2025, normalized.

Accounting policies

Sandvik Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. With exception for new and revised standards and interpretations effective from January 1, 2024 the same accounting and valuation policies were applied as in Sandvik Group Annual Report 2023. There are no new accounting policies applicable from 2024 that significantly affects Sandvik Group. This report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2, Reporting for Legal Entities.

In Q1 2024, Sandvik converted the financial electricity hedges into physical contracts. The effect of the financial electricity hedges was presented within the financial net, while the result of the physical contracts is presented within the operating result.

Since January 1, 2024, Sandvik applies hedge accounting for currency-hedges of customer orders not yet invoiced. When the hedge accounting criteria are fulfilled Sandvik presents the changes in market value for these hedges in Other Comprehensive Income. Prior to implementing hedge accounting, these effects were presented within the profit and loss statement in the financial net.

IAS 12 Pillar II

The group is within the scope of the OECD Pillar II model rules. In Sweden, the jurisdiction in which Sandvik AB is incorporated, the Pillar II legislation came into effect from January 1, 2024. The group may be subject to Pillar II taxes for the first time in 2024. Sandvik's assessment is that the Group will not be liable to any material Pillar II taxes as most jurisdictions in which the Group operates have an effective tax rate of 15% or higher. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar II income taxes, as provided in the amendments to IAS 12 issued in May 2023.

Sandvik has four long-term financial targets, defined in 2022

Growth

A growth of 7% through a business cycle organic and M&A, in fixed currency.

Adjusted EBITA range

An adjusted EBITA range of 20–22% through a business cycle adjusted for IAC.

Dividend payout ratio

A dividend payout ratio of 50% of EPS, adjusted for IAC, through a business cycle.

Financial net debt/EBITDA

A financial net debt/EBITDA of <1.5 excl. transformational M&A.

Sustainability

The 2030 sustainability targets focus on the areas of circularity, climate, people and ethics. These targets are reported on a quarterly basis and can be found on page 9.

Transactions with related parties

No transactions between Sandvik and related parties that significantly affected the company's position and results took place.

Risk assessment

As an international group with a wide geographic spread, Sandvik is exposed to several strategic, business and financial risks. Strategic risk at Sandvik is defined as emerging risks affecting the business long-term, such as industry shifts, technological shifts and macroeconomic developments. The business risks can be divided into operational, sustainability, compliance, legal and commercial risks. The financial risks include currency risks, interest rates, raw material prices, tax risks and more. These risk areas can all impact the business negatively both long and short term but often also create business opportunities if managed well.

Risk management at Sandvik begins with an assessment in operational management teams where the material risks for their operations are first identified, followed by an evaluation of the probability of the risks occurring and their potential impact on the Group. Once the key risks have been identified and evaluated risk mitigating activities to eliminate or reduce the risks are agreed on.

For a more detailed description of Sandvik's analysis of risks and risk universe, see the Annual Report for 2023.

Financial reports summary The Group

Income statement

MSEK	Q4 2023	Q4 2024	Change %	Q1-Q4 2023	Q1-Q4 2024	Change %
Revenues	31,816	32,151	1	126,503	122,878	-3
Cost of goods and services sold	-18,721	-19,190	3	-74,456	-73,742	-1
Gross profit	13,094	12,961	-1	52,046	49,136	-6
% of revenues	41.2	40.3	–	41.1	40.0	–
Selling expenses	-3,930	-3,891	-1	-15,876	-15,832	0
Administrative expenses	-2,088	-2,135	2	-8,794	-8,915	1
Research and development costs	-1,157	-1,171	1	-4,489	-4,808	7
Other operating income and expenses	10	-18	N/M	-470	-1,160	N/M
Operating profit	5,929	5,745	-3	22,418	18,420	-18
% of revenues	18.6	17.9	–	17.7	15.0	–
Financial income	162	352	N/M	808	827	2
Financial expenses	-793	-716	-10	-3,431	-2,787	-19
Net financial items	-630	-364	-42	-2,623	-1,959	-25
Profit before tax	5,298	5,381	2	19,794	16,461	-17
% of revenues	16.7	16.7	–	15.6	13.4	–
Income tax	-1,040	-1,084	4	-4,493	-4,216	-6
Profit for the period	4,259	4,297	1	15,301	12,245	-20
% of revenues	13.4	13.4	–	12.1	10.0	–
Profit (loss) for the period attributable to
Owners of the parent company	4,260	4,297	1	15,300	12,243	-20
Non-controlling interest	-1	0	N/M	1	2	19
Earnings per share, basic	3.40	3.43	1	12.20	9.76	-20
Earnings per share, diluted	3.39	3.42	1	12.18	9.75	-20
Other comprehensive income
Items that will not be reclassified to profit (loss)
Actuarial gains (losses) on defined benefit pension plans	-599	172		-510	-117
Tax relating to items that will not be reclassified	178	-68		167	-5
Total items that will not be reclassified to profit (loss)	-421	104		-344	-122
Items that may be reclassified subsequently to profit (loss)
Translation differences	-6,400	4,130		-3,113	5,627
Hedge reserve	1,455	-1,453		1,052	-1,622
Tax relating to items that may be reclassified	-300	299		-217	334
Fair value adjustment	-2	-15		-2	-14
Total items that may be reclassified subsequently to profit (loss)	-5,247	2,962		-2,279	4,326
Total other comprehensive income	-5,668	3,066		-2,623	4,204
Total comprehensive income	-1,409	7,363		12,678	16,449
Total comprehensive income attributable to
Owners of the parent company	-1,407	7,361		12,678	16,445
Non-controlling interest	-2	2		0	4

The Group

Balance sheet

MSEK Dec 31, 2023	Dec 31, 2024
Intangible assets 64,495	70,323
Property, plant and equipment 22,234	24,678
Right-of-use assets 5,384	5,877
Financial assets 9,980	10,004
Inventories 34,301	34,827
Current receivables 33,298	33,752
Cash and cash equivalents 4,363	4,528
Assets held for sale 154	395
Total Assets 174,210	184,384
Total equity 87,697	96,999
Non-current interest-bearing liabilities 36,931	40,869
Non-current non-interest-bearing liabilities 5,704	5,491
Current interest-bearing liabilities 12,240	6,269
Current non-interest-bearing liabilities 31,602	34,714
Liabilities held for sale 36	43
Total equity and liabilities 174,210	184,384

Changes in equity

MSEK	Equity related to owners of the parent company	Non-controlling interest	Total equity
Equity at January 1, 2023	81,227	43	81,270
Adjustment on correction of error	204	–	204
Equity at January 1, 2023	81,431	43	81,474
Total comprehensive income (loss) for the period	12,678	0	12,678
Change in fair value of put option to acquire non-controlling interest	-86	–	-86
Change in non-controlling interest	-23	23	–
Share based program	-109	–	-109
Dividend	-6,261	–	-6,261
Equity at December 31, 2023	87,631	66	87,697

Equity at January 1, 2024	87,631	66	87,697
Adjustment on correction of error	-77	–	-77
Equity at January 1, 2024	87,555	66	87,620
Total comprehensive income (loss) for the period	16,445	4	16,449
Change in fair value of put option to acquire non-controlling interest	-219	–	-219
Change in non-controlling interest	-6	6	–
Share based program	29	–	29
Dividend	-6,880	–	-6,880
Equity at December 31, 2024	96,924	75	96,999

The Group

Cash flow statement

MSEK	Q4 2023	Q4 2024	Q1-Q4 2023	Q1-Q4 2024
Cash flow from operating activities
Profit before tax	5,298	5,381	19,794	16,461
Adjustment for depreciation, amortization and impairment losses	1,789	1,990	7,459	7,981
Other adjustments for non-cash items	-662	-517	1,834	1,822
Payment to pension fund	-77	-63	-509	-395
Income tax paid	-2,086	339	-6,852	-5,474
Cash flow from operating activities before changes in working capital	4,262	7,130	21,726	20,395
Changes in working capital
Change in inventories	1,827	1,357	292	1,189
Change in operating receivables	540	261	-171	347
Change in operating liabilities	-1,329	-440	-2,527	-280
Cash flow from changes in working capital	1,039	1,178	-2,406	1,256
Investments in rental equipment	-211	-467	-910	-1,407
Proceeds from sale of rental equipment	106	124	387	363
Cash flow from operating activities, net	5,196	7,966	18,797	20,607
Cash flow from investing activities
Acquisitions of companies and shares, net of cash acquired	-224	-351	-1,877	-3,187
Proceeds from sale of companies and shares, net of cash disposed	-164	7	-164	-22
Acquisitions of tangible assets	-1,215	-1,068	-3,872	-3,565
Proceeds from sale of tangible assets	68	50	315	257
Acquisitions of intangible assets	-483	-298	-1,482	-1,276
Proceeds from sale of intangible assets	1	–	6	7
Acquisitions of financial assets	-5	-21	-113	-23
Proceeds from sale of financial assets	10	2	10	18
Other investments, net	-34	-193	-1,327	122
Cash flow from investing activities	-2,048	-1,872	-8,505	-7,671
Cash flow from financing activities
Repayment of borrowings	-3,187	-5,399	-8,457	-10,535
Proceeds from borrowings	37	44	78	5,928
Amortization, lease liabilities	-392	-369	-1,323	-1,439
Repurchase of own shares	–	–	-242	-61
Dividends paid	–	–	-6,261	-6,880
Cash flow from financing activities, net	-3,542	-5,724	-16,206	-12,988
Total cash flow	-394	370	-5,913	-51
Cash and cash equivalents at beginning of the period	4,998	4,035	10,489	4,363
Exchange-rate differences in cash and cash equivalents	-241	123	-213	216
Cash and cash equivalents at the end of the period	4,363	4,528	4,363	4,528

The Parent company

For full year 2024 the parent company's revenue amounted to SEK 13,427 million (13,705) and the operating result was SEK 793 million (-6,868). Result from shares in Group companies of SEK 9,147 million (12,855) for the year consists mainly of dividends and contributions.

Interest-bearing liabilities, less cash and cash equivalents and interest-bearing assets, amounted to SEK 36,753 million (38,011). Investments in property, plant and machinery amounted to SEK 438 million (384).

Income statement

MSEK	Q4 2023	Q4 2024	Q1-Q4 2023	Q1-Q4 2024
Revenues	3,271	2,831	13,705	13,427
Cost of goods and services sold	-12,873	-1,835	-14,616	-7,117
Gross profit	-9,602	996	-911	6,310
Selling expenses	48	-286	-938	-945
Administrative expenses	-540	-557	-2,313	-2,024
Research and development costs	-431	-370	-1,599	-1,609
Other operating income and expenses	-472	-66	-1,107	-939
Operating result	-10,977	-283	-6,868	793
Result from shares in group companies	9,417	6,223	12,855	9,147
Interest income/expenses and similar items	-439	-353	-1,242	-1,647
Result after financial items	2,019	5,587	4,745	8,293
Appropriations	-28	-38	13	128
Income tax	1,728	223	638	296
Result for the period	-319	5,772	5,396	8,717

Balance sheet

MSEK	Dec 31, 2023	Dec 31, 2024
Intangible assets	312	186
Property, plant and equipment	3,064	3,082
Financial assets	83,550	82,955
Inventories	1,082	1,062
Current receivables	12,406	9,621
Cash and cash equivalents	0	0
Total assets	100,414	96,906
Total equity	29,249	31,106
Untaxed reserves	1,057	929
Provisions	1,178	1,347
Non-current interest-bearing liabilities	26,649	24,063
Non-current non-interest-bearing liabilities	416	246
Current interest-bearing liabilities	30,712	34,895
Current non-interest-bearing liabilities	11,153	4,320
Total equity and liabilities	100,414	96,906
Interest-bearing liabilities and provisions minus cash and cash equivalents and interest-bearing assets	38,011	36,753
Investments in fixed assets	384	438

Market overview, the Group

Order intake by region

		Change*				Change*
MSEK	Q4 2024	%	%1)	Share %	Q1-Q4 2024	%	%1)	Share
The Group
Europe	7,915	-2	2	25	31,913	-4	-4	26
North America	7,945	5	8	25	30,755	-3	0	25
South America	2,102	12	12	7	9,220	14	10	7
Africa/Middle East	4,060	20	31	13	15,604	12	12	13
Asia	5,707	-6	1	18	21,968	3	1	18
Australia	3,832	11	9	12	15,234	11	9	12
Total2)	31,562	4	8	100	124,694	1	1	100
Sandvik Mining and Rock Solutions
Europe	1,725	6	26	10	6,612	-5	-1	10
North America	3,903	10	18	24	14,424	-5	1	22
South America	1,497	7	7	9	6,597	17	12	10
Africa/Middle East	3,671	21	34	22	13,701	13	15	21
Asia	2,582	-12	0	16	10,335	5	0	16
Australia	3,140	4	4	19	12,734	-3	-2	20
Total	16,518	6	15	100	64,404	2	4	100
Sandvik Rock Processing Solutions
Europe	409	-24	-13	15	1,848	-17	-17	17
North America	602	40	40	22	2,298	6	6	21
South America	319	30	30	12	1,429	12	7	13
Africa/Middle East	265	28	28	10	1,394	6	-9	13
Asia	521	12	9	19	1,971	-7	-8	18
Australia	617	72	56	23	2,163	11	14	19
Total	2,735	22	23	100	11,103	1	-2	100
Sandvik Manufacturing and Machining Solutions
Europe	5,781	-3	n/a	47	23,453	-3	n/a	48
North America	3,441	-5	n/a	28	14,032	-3	n/a	29
South America	286	17	n/a	2	1,194	5	n/a	2
Africa/Middle East	123	-12	n/a	1	508	2	n/a	1
Asia	2,604	-1	n/a	21	9,662	3	n/a	20
Australia	75	-3	n/a	1	337	1	n/a	1
Total	12,309	-3	n/a	100	49,187	-2	n/a	100

*Organic change compared with the year-earlier period

1) Excluding major orders which is defined as above SEK 200 million for Sandvik Mining and Rock Solutions and SEK 50 million for Sandvik Rock Processing Solutions. 2) Includes rental fleet order intake in Q4 of SEK 263 million and YTD SEK 917 million, recognized according to IFRS 16.

n/a = not applicable

Market overview, the Group

Revenues by region

MSEK	Q4 2024	Change* %	Share %	Q1-Q4 2024	Change*%	Share
The Group
Europe	8,115	-3	25	31,861	-5	26
North America	7,441	-3	23	30,583	-4	25
South America	2,153	8	7	8,514	4	7
Africa/Middle East	4,105	4	13	15,232	1	12
Asia	6,463	8	20	21,662	2	18
Australia	3,875	-8	12	15,026	-4	12
Total1)	32,151	0	100	122,878	-2	100
Sandvik Mining and Rock Solutions
Europe	1,942	4	11	6,531	-4	10
North America	3,574	-4	21	14,586	-4	23
South America	1,523	8	9	6,096	6	10
Africa/Middle East	3,525	2	20	13,349	0	21
Asia	3,444	25	20	10,260	5	16
Australia	3,298	-8	19	12,785	-4	20
Total	17,306	3	100	63,607	-1	100
Sandvik Rock Processing Solutions
Europe	535	12	19	2,083	-5	19
North America	508	0	18	2,158	-10	20
South America	377	10	13	1,326	-3	12
Africa/Middle East	457	31	16	1,374	8	13
Asia	426	-30	15	1,854	-13	17
Australia	501	-3	18	1,909	0	18
Total						100
	2,803	0	100	10,704	-5
Sandvik Manufacturing and Machining Solutions
Europe	5,638	-6	47	23,247	-5	48
North America	3,358	-3	28	13,838	-3	28
South America	253	8	2	1,092	0	2
Africa/Middle East	123	0	1	509	5	1
Asia	2,594	-1	22	9,548	3	20
Australia Total	76 12,041	-8 -4	1 100	332 48,567	-2 -3	1 100

*Organic change compared with the year-earlier period

1) Includes rental fleet revenues in Q4 of SEK 242 million and SEK 978 million YTD, recognized according to IFRS 16.

Order Intake by Business Area

									Change
MSEK	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024 Q3 2024		Q4 2024	%		% * Q1-Q4 2024
Sandvik Mining and Rock Solutions	17,510	16,654	14,702	15,661	64,527	15,849	17,043	14,994	16,518	5	6	64,404
Sandvik Rock Processing Solutions	3,227	2,939	2,824	2,248	11,238	2,949	2,691	2,730	2,735	22	22	11,103
Sandvik Manufacturing and Machining Solutions	13,626	12,067	11,401	12,154	49,247	13,184	12,621	11,073	12,309	1	-3	49,187
Group Total1)	34,363	31,660	28,927	30,062	125,011	31,981	32,354	28,796	31,562	5	4	124,694

Revenues by Business Area

									Change
MSEK	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024 Q3 2024		Q4 2024	%		% * Q1-Q4 2024
Sandvik Mining and Rock Solutions	15,366	16,755	16,674	16,894	65,690	14,312	16,151	15,838	17,306	2	3	63,607
Sandvik Rock Processing Solutions	2,939	2,872	2,854	2,807	11,472	2,446	2,704	2,750	2,803	0	0	10,704
Sandvik Manufacturing and Machining Solutions	12,662	12,616	11,948	12,114	49,340	12,244	12,564	11,718	12,041	-1	-4	48,567
Group Total1)	30,968	32,243	31,476	31,816	126,503	29,002	31,419	30,306	32,151	1	0	122,878

EBITA by Business Area

MSEK	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024 Q3 2024		Q4 2024	Change %	Q1-Q4 2024
Sandvik Mining and Rock Solutions	3,056	3,494	3,514	3,719	13,783	2,084	3,336	3,243	3,781	2	12,443
Sandvik Rock Processing Solutions	421	243	401	452	1,517	-69	397	418	405	-10	1,150
Sandvik Manufacturing and Machining Solutions	2,813	2,364	2,482	2,386	10,045	964	2,480	1,885	2,285	-4	7,614
Group activities	-217	-307	-136	-155	-814	-207	-195	-135	-178	15	-715
Group Total1)	6,074	5,794	6,260	6,402	24,530	2,772	6,018	5,410	6,292	-2	20,493

EBITA Margin by Business Area

%	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024 Q3 2024		Q4 2024	Q1-Q4 2024
Sandvik Mining and Rock Solutions	19.9	20.9	21.1	22.0	21.0	14.6	20.7	20.5	21.8	19.6
Sandvik Rock Processing Solutions	14.3	8.5	14.0	16.1	13.2	-2.8	14.7	15.2	14.4	10.7
Sandvik Manufacturing and Machining Solutions	22.2	18.7	20.8	19.7	20.4	7.9	19.7	16.1	19.0	15.7
Group Total1)	19.6	18.0	19.9	20.1	19.4	9.6	19.2	17.9	19.6	16.7

Adjusted EBITA by Business Area

MSEK	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Change %	Q1-Q4 2024
Sandvik Mining and Rock Solutions	3,075	3,621	3,548	3,472	13,716	2,605	3,356	3,269	3,721	7	12,950
Sandvik Rock Processing Solutions	426	394	401	440	1,661	326	409	417	409	-7	1,562
Sandvik Manufacturing and Machining Solutions	2,835	2,811	2,499	2,453	10,597	2,485	2,579	2,314	2,340	-5	9,718
Group activities	-217	-226	-136	-155	-733	-135	-195	-135	-182	18	-647
Group Total1)	6,119	6,599	6,312	6,211	25,240	5,281	6,149	5,866	6,288	1	23,583

Adjusted EBITA Margin by Business Area

%	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1-Q4 2024
Sandvik Mining and Rock Solutions	20.0	21.6	21.3	20.6	20.9	18.2	20.8	20.6	21.5	20.4
Sandvik Rock Processing Solutions	14.5	13.7	14.1	15.7	14.5	13.3	15.1	15.2	14.6	14.6
Sandvik Manufacturing and Machining Solutions	22.4	22.3	20.9	20.2	21.5	20.3	20.5	19.8	19.4	20.0
Group Total1)	19.8	20.5	20.1	19.5	20.0	18.2	19.6	19.4	19.6	19.2

* Organic change compared with the year-earlier period

1) Internal transactions had negligible effect on business area profits.

Items affecting comparability on EBITA

MSEK	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1-Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1-Q4 2024
Sandvik Mining and Rock Solutions	-19	-127	-34	246	67	-521	-20	-26	60	-507
Sandvik Rock Processing Solutions	-5	-151	–	11	-144	-395	-12	–	-4	-411
Sandvik Manufacturing and Machining Solutions	-22	-447	-17	-66	-552	-1,521	-99	-429	-55	-2,104
Group activities	–	-81	–	–	-81	-72	–	–	4	-67
Group Total	-45	-805	-51	191	-710	-2,509	-131	-455	5	-3,090

2023

Q1 2023– IAC of SEK -45 million comprising mainly of M&A costs related to SMM and SMR.

Q2 2023– IAC of SEK -805 million, whereof SEK -728 million relates to structural measures to support resilience ambitions announced in May 2022, applicable for all Business Areas as well as Group, with the main portion related to SMM and SRP. IAC of SEK -77 million consists of M&A costs primarily related to SMR and SMM.

Q3 2023– IAC of SEK -51 million comprising of M&A costs related to SMR and SMM.

Q4 2023– IAC of SEK 191 million mainly comprising of a gain of SEK 230 million from a divestment related to the wind down of operations in Russia, the gain is driven by accumulated FX gains in equity and is reported within SMR and SRP, releases related to structural initiatives announced in previous years of SEK 22 million, mainly SMM, a gain from the divestment of DSI Tunneling of SEK 16 million in SMR, offset by M&A costs of SEK -76 million in SMM.

2024

Q1 2024 – IAC of SEK -2,509 million, comprising of structural measures to support operational efficiency and resilience ambitions announced in January at a net cost of SEK -2,425 million, impacting all BAs, and M&A costs totaling SEK -84 million primarily SMM and SMR.

Q2 2024 – IAC of SEK -131 million, comprising of a provision related to a property sale within SMM earlier year where the gain was taken as an IAC, and M&A costs totaling SEK -48 million impacting all BAs.

Q3 2024 – IAC of SEK -455 million, comprising of a capital loss, including transactional costs, of SEK -225 million from the divestment of DWFritz ETO business (SMM), a write down of SEK -145 million related to the 30% investment in BeamIT (SMM) and M&A costs totaling SEK -84 million, primarily SMM and SMR.

Q4 2024 – IAC of SEK +5 million, mainly comprising of a positive impact from M&A activities driven by a partial release of an earnout within SMR offset by M&A costs primarily within SMM and by a correction of the opening balances related to the acquisition of Cambrio within SMM.

Adjusted EBIT and Adjusted EBITA per Business Area

Q4 2024, MSEK	Reported EBIT	Reported EBIT, %	IAC 1)	Adjusted EBIT	Adjusted EBIT, %	Amortizations 2)	Adjusted EBITA	Adjusted EBITA, %
Sandvik Mining and Rock Solutions	3,664	21.2	60	3,604	20.8	-117	3,721	21.5
Sandvik Rock Processing Solutions	344	12.3	-4	348	12.4	-61	409	14.6
Sandvik Manufacturing and Machining Solutions	1,916	15.9	-55	1,971	16.4	-369	2,340	19.4
Group activities	-178	–	4	-182	–	–	-182	–
Group Total	5,745	17.9	5	5,741	17.9	-547	6,288	19.6

1) For full details on IAC, see above. 2) Accounting effects arising from business combinations, referring to amortizations, depreciations and impairments. Primary related to costs within COGS and Selling expenses.

Taxes excluding items affecting comparability

						Tax excluding
Q4 2023, MSEK	Reported tax	Reported tax, %	IAC	IAC, %	Tax excluding IAC	IAC, %
Group Total	-1,040	19.6	21	11.0	-1,061	20.8
Q4 2024
Group Total	-1,084	20.1	209	n/m	-1,293	24.0

Adjusted earnings per share diluted

		IAC on net profit,		Adjustment for	Adj EPS, diluted excluding
Q4 2023, SEK	Reported EPS, diluted	MSEK	Adjusted EPS, diluted	surplus values, MSEK	surplus values
Group Total	3.39	212	3.22	-381	3.53
Q4 2024
Group Total	3.42	213	3.25	-464	3.62

Net debt

Dec 31, 2023	Mar 31, 2024	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024
39,578	37,515	45,919	41,349	36,644
-4,363	-3,577	-5,375	-4,035	-4,528
35,215	33,938	40,544	37,314	32,116
2,757	2,376	2,496	3,018	2,888
5,503	5,839	5,938	5,723	6,111
43,475	42,154	48,978	46,055	41,115
1.2	1.3	1.5	1.4	1.2

Net working capital and capital employed

MSEK	Dec 31, 2023	Mar 31, 2024	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024
Inventories	34,305	36,026	35,716	35,203	34,831
Trade receivables	18,499	20,198	20,970	19,390	19,896
Account payables	-9,595	-10,070	-9,940	-9,954	-10,114
Other receivables	6,358	6,032	6,002	5,995	6,384
Other liabilities	-14,519	-15,601	-14,830	-14,768	-15,095
Net working capital	35,048	36,585	37,918	35,866	35,902
Tangible assets	22,254	23,018	23,143	23,796	24,707
Intangible assets	64,586	67,239	67,508	67,665	70,493
Other assets (incl. cash and cash equivalents)	87,369	90,213	93,322	88,857	89,185
Other liabilities	-36,833	-39,081	-38,640	-38,979	-40,191
Capital employed	137,377	141,389	145,334	141,339	144,193

Return on capital employed by Business Area

%1)	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024
Sandvik Mining and Rock Solutions	24.4	22.3	21.7	21.4	21.6
Sandvik Rock Processing Solutions	8.5	5.2	6.3	6.5	6.4
Sandvik Manufacturing and Machining Solutions	13.7	10.6	11.1	10.1	9.6
Group Total	16.4	14.0	14.1	13.5	13.4
Excluding amortization of surplus values
Sandvik Mining and Rock Solutions	25.4	23.3	22.7	22.3	22.5
Sandvik Rock Processing Solutions	10.6	7.2	8.3	8.6	8.4
Sandvik Manufacturing and Machining Solutions	15.6	12.7	12.9	11.9	11.6
Group Total	17.9	15.5	15.5	14.9	14.8

Key figures

Group total	Q4 2023	Q4 2024	Q1-Q4 2023	Q1-Q4 2024
Return on capital employed, %1)	16.4	13.4	16.4	13.4
Return on total equity, %1)	17.6	13.3	17.6	13.3
Shareholders' equity per share, SEK	69.9	77.3	69.9	77.3
Financial net debt / EBITDA	1.2	1.2	1.2	1.2
Net working capital, %1)	28.9	29.9	28.9	29.9
Earnings per share, basic, SEK	3.40	3.43	12.20	9.76
Earnings per share diluted, SEK	3.39	3.42	12.18	9.75
EBITDA, MSEK	7,717	7,736	29,877	26,401
Cash flow from operations, MSEK	5,196	7,966	18,797	20,607
Number of employees2)	40,877	41,447	40,877	41,447
No. of shares outstanding at end of period ('000)	1,254,386	1,254,386	1,254,386	1,254,386
Average no. of shares, ('000)	1,254,386	1,254,386	1,254,386	1,254,386
Average no. of shares, diluted, ('000)	1,256,180	1,255,798	1,255,916	1,255,986

1) New calculation as of Q2 2024, 2023 is updated accordingly, quarter and the annual number is based on a 12-month average, see Definitions on page 22. 2) Full-time equivalent.

For additional information, please call Sandvik Investor Relations +46 8 456 11 00 or visit home.sandvik

Definitions of alternative performance measures

Sandvik presents below definitions of certain financial measures that are not defined in the interim report in accordance with IFRS. Sandvik believes that these measures have an important purpose of providing useful supplemental information to investors and the company's management when they allow evaluation of trends and the company's performance. As not all companies calculate the financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not be seen as a substitute for measures defined under IFRS.

Adjusted EBITA

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability.

Adjusted EBITA margin

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability, in relation to sales.

Adjusted EPS

Profit/loss for the period adjusted for items affecting comparability attributable to equity holders of the parent company divided by the average number of shares outstanding during the year.

Adjusted EPS, diluted

Profit/loss for the period adjusted for items affecting comparability attributable to equity holders of the parent company divided by the average number of shares outstanding during the year including shares that will be allotted in the long-term incentive programs.

Adjusted EPS, diluted excluding amortization of surplus values

Profit for the period adjusted for items affecting comparability and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, net of tax, attributable to equity holders of the parent company, divided by the average number of shares outstanding during the year including shares that will be allotted in the long-term incentive programs.

Adjusted profit before tax

Profit before tax adjusted from items affecting comparability.

Capital employed

Capital employed is defined as total net working capital plus tangible and intangible assets, including those classified as asset held for sale, other current assets (incl. cash and cash equivalents) less other current liabilities.

Cash conversion

Free operating cash flow, adjusted for items affecting comparability divided by adjusted EBITA.

EBITA

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments.

EBITDA

Operating profit (EBIT) less depreciation, amortization and impairments.

Financial net debt/EBITDA

Interest-bearing current and non-current liabilities, excluding net pension liabilities and leases, less cash equivalents divided by rolling 12 months EBITDA.

Free operating cash flow

Earnings before interest, taxes and depreciation adjusted for noncash items and adjusted for cash items related to acquisitions not considered operational plus the change in net working capital minus investments and disposals of rental equipment and tangible and intangible assets.

Items affecting comparability (IAC)

Sandvik reports EBITA, EBIT, profit before tax and earnings per share adjusted for items affecting comparability. IAC includes capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets, M&A related costs as well as other material items having a significant impact on the comparability.

Net debt

Interest-bearing current and non-current liabilities, including net pension liabilities and leases, less cash and cash equivalents.

Net Working Capital (NWC)

Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as assets and liabilities held for sale/distribution, but excluding tax assets and tax liabilities and provisions.

Net working capital in relation to revenues

Net working capital on an average 12 month rolling basis divided by 12 month rolling revenues.

Order intake

Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.

Organic growth

Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions. Sandvik generates the majority of its revenues in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Organic growth is used to analyze the underlying sales performance in the Group.

Return on capital employed (ROCE)

Earnings before interest and taxes plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.

Return on capital employed (ROCE), excluding amortization of surplus values

Earnings before interest and taxes, adjusted for accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.

Return on total equity

Consolidated net profit/loss for the year as a percentage of average total equity.

Disclaimer statement

Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors, for example the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.

Annual General Meeting

The Board of Directors has decided that the 2025 Annual General Meeting will be held in Sandviken, Sweden on April 29, 2025. The notice to convene the Annual General Meeting will be made in the prescribed manner.

Dividend

The Board of Directors proposes a dividend of SEK 5.75 per share (5.50), or a total of SEK 7,213 million (6,899) for 2024. The proposed record date to receive dividends is May 2, 2025. Assuming the General Meeting accepts the dividend proposal, the date to receive dividends is May 7, 2025.

Stockholm, January 23, 2025 Sandvik Aktiebolag (publ)

The Board of Directors

The Company's Auditor has not reviewed the report for the full year of 2024.

This information is information that Sandvik AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 8:00 AM CET on January 23, 2025.

Additional information may be obtained from Sandvik Investor Relations on +46 70 782 63 74 (Louise Tjeder).

A webcast and telephone conference will be held on January 23, 2025 at 10:00 AM CET. Information is available at home.sandvik/investors

Calendar
March 10, 2025	Annual Report 2024
April 16, 2025	Report, first quarter, 2025
April 29, 2025	Annual General Meeting
May 2, 2025	Proposed record date to receive dividends
May 7, 2025	Proposed date to receive dividends
May 20-21, 2025	Capital Markets Day
July 16, 2025	Report, second quarter, 2025
October 20, 2025	Report, third quarter, 2025

Sandvik AB Box 510 SE-101 30 Stockholm +46 8 456 11 00 Corp Reg. No: 556000–3468