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Sandvik Mining and Construction

Sandvik Mining and Construction

Equipment, tools and services for

mining and construction industries

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Sandvik Mining and Construction

SMC Sales (BSEK)

2000 20010.0

1010.2

13.5

2002

13.8

20

2003

14.3

2004

16.6

Key Figures - 2006

EBIT 14.7 %

ROCE 31.6 %

ObjectivesGrowth 6 %

ROCE 20 %

EBIT 10-15 %over a business cycleTo be revised 2007

2005

20.6

2006

25.0

30

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Sandvik Mining and Construction

Main business drivers and trends

Market Technology Customers

Continued high demand

Exploration activitiesincreases

Increasing lack of skilledpeople

Mechanization andautomatization due to

safety and productivity

Surface to underground

From drill & blast tocontinuous mining

Consolidation throughM&As

Globalization, searchfor synergies

J unior miners

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Sandvik Mining and Construction

CustomerExpectations

Unit Supplier

Parts &

Service

Per Unit/

Per Foot

ExcavatedTonne /

Per Meter

Customer

Performance

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Sandvik Mining and Construction

Sandvik Mining and Construction

Industry approach9 Technically advanced

Automation, monitoring, mobile phonetechnology underground, remote mining,computerized units

9 Safety focused

No incident policy

9 Environmentally conscious

Sustainability enforces all aspects to beincluded for long term asset management

9 Global approach

Big mining houses apply common policiesglobally

9 Cross disciplined work force

Needs highly skilled people

Needs attractive working conditions

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Sandvik Mining and Construction

Common funct ions

AFR

APC

AUS

CHN

CIS LAM

NCE

SEM

USC

Logistics Supply

Customer segments

Customer

Customer focused organization

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Sandvik Mining and Construction

Sandvik Mining

and Construction

1998

Toro

Our history

Driltech

EIMCO

EJ C

SecomaRammer

Roxon

Voest-Alpine

TamrockSandvik Rock Tools

Drillmaster

Mission

MGT

Hagby-AsahiImplemin

SDS

UDR

BPISvedala

Bryt

Beltreco

Toyo

New strategy

Applications &

Solutions

2006

Shark

2007

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Sandvik Mining and Construction

Sandvik Mining and Construction

customer focus

Sales by customer industries Sales by product type

UG Hardrock mining

Construction

Surfacemining

UG Softrock mining

Aftermarket parts,tools, consumablesand services

Equipment

Projectsales

Underground

Soft Rock Mining

Underground

Hard Rock Mining Surface Mining Construction Mineral Explorat ion

MineralExploration

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Sandvik Mining and Construction

Sandvik Mining and ConstructionProduction Plants

ArbrHaparandaKpingSandvikenSvedalaStockholmSweden HollolaLahti

TampereTurkuFinland

BurlingtonCanada

BristolDallasAlachuaUSA

Sao PauloBrazil

J ohannesburgDelmasKrugersdorpSouth Africa

HarareZimbabwe

PunePatancheruIndia

MackayNewcastlePerthSydney

TomagoAustral ia

Tychy, PolandSchppenstedt, Germany

Zeltweg,AustriaChauny, France

Lyon, France

ShanghaiChina

SantiagoChile

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Sandvik Mining and Construction

Widest product range in the industry

z Rock Tools and Systems

z Drill rigs and rock drills

zLoad and haul machines

z Continuous mining and

tunneling machines

z Crushers and screens

z Conveyors and conveyorcomponents

z Bulk material handling

equipment

zBreakers and demolition tools

z Exploration drill rigs and tools

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Sandvik Mining and Construction

Targeted R&D

z Increasing the extent of our

z Mining and Construction offering

9 Knowledge-based products

9 Intelligent machines

9 Customized products9 Environmentally friendly solutions

9 Utilizing group synergies

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Sandvik Mining and Construction

z Sandvik Mining and Construct ion

z - the solutions provider

9 Deep and strong partnerships with customers

Sandvik and Lonmin signs Unique CollaborationPartnership

Strategic Intent with Anglo Platinum

9 Help customers exceed and improve their productivityand performance

Training and Competence development together withcustomers

9 Life time approach

Strong aftermarket development

CustomerPartnerships

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Sandvik Mining and Construction

Sandvik looks through customers

processes to find solutions

Rather than through Sandvik products to find customers

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Sandvik Mining and Construction

Sandvik Mining and Construction