We use a two-color
headline system to
highlight our rational and
emotional side alike. The
first line appears in blue
(the rational side), the
second line in orange (the
emotional side) and the
duality principle is reflected
in the wording of the
headline.
This system refers to the
first page title only, all
other headlines are blue.
Learn more about our
verbal identity in the
Sandvik Brand Identity
Directives, which you can
download at the Intranet >
home.sandvik.com/brand
SANDVIK MINING AND ROCK TECHNOLOGY CAPITAL MARKETS DAY
1
LARS ENGSTRÖM, PRESIDENT
SAFETY FIRST
2
Sandvik’s objective is zero harm to our people, the
environment we work in, our customers and our suppliers.
1.21.21.51.62.3
3.54.14.85.4
10.0
13.0
2016 2017
YTD
2008 2009 2007 2012 2014 2013 2011 2010 2015
TRIFR* by year
*LTIFR – Lost-time injury frequency rate; TRIFR – Total recordable injury frequency rate
3,94,55,65,9
9,4
11,212,612,912,9
19,6
24,0
2017
YTD
2015 2016 2012 2010 2009 2008 2007 2013 2014 2011
LTIFR* by year Industry leading in LTIFR level both
as compared to peers and to
customers
Founding member of Mining Safety
Round Table
Strong internal safety culture
3
ORGANIZATION
SANDVIK MINING AND ROCK TECHNOLOGY
FINANCE (Finance, IT, Legal,
Compliance)
Fredrik Westin
MID-MARKET
Kobus Malan
HR (HR and EHS)
Johan Hedlund
STRATEGY
Martin Nyström
LOAD & HAUL
Mats Eriksson
MECHANICAL
CUTTING
Reinhard Reinartz
ROCK TOOLS
Henrik Ager
SURFACE
DRILLING &
EXPLORATION
Joanne Cooke
CRUSHING &
SCREENING
Anders Svensson
ROCK DRILLS &
TECHNOLOGIES
Patrick Murphy
PARTS &
SERVICES
Ed Santamaria
PRESIDENT
Lars Engström
GLOBAL SALES
Gary Hughes
UNDERGROUND
DRILLING
Jaakko Koppinen
4
JAAKKO KOPPINEN UNDERGROUND
DRILLING
MANAGEMENT TEAM AND PRODUCT AREAS
5
SANDVIK MINING AND ROCK TECHNOLOGY
FREDRIK WESTIN CFO
MARTIN NYSTRÖM STRATEGY
JOHAN HEDLUND HR
KOBUS MALAN MID MARKET
ED SANTAMARIA PARTS &
SERVICES
HENRIK AGER ROCK TOOLS
(INCLUDING
DRILLING
& COMPLETION)
ANDERS SVENSSON CRUSHING &
SCREENING
JOANNE COOKE SURFACE
DRILLING &
EXPLORATION
PATRICK MURPHY ROCK DRILLS &
TECHNOLOGIES
REINHARD REINARTZ MECHANICAL
CUTTING
MATS ERIKSSON LOAD & HAUL
GARY HUGES GLOBAL
SALES
STRONG BUSINESS PERFORMANCE
+23%
6
ORDER INTAKE
+16%
PROFITABILITY
25%
NET WORKING
CAPITAL
Q1-Q3 2017
OUR BIGGEST SEGMENT IS MINING
7
CONSTRUCTION
72%
3%
2017
25%
MINING
OIL AND GAS Sandvik Mining and Rock Technology revenues
by segment, % of total, Q1-Q3 2017
Q1-Q3 2017
SALES SPLIT
8
63%* Aftermarket
37%* Equipment
2017
*Invoicing
Q1-Q3 2017
MACRO ECONOMICS AND COMMODITY PRICES
Source: BMI; Macrobond
COMMODITY PRICE INDEX, WEEK 45
WEEKLY COMMODITY PRICE INDEX, base= 2007
NOTE: Mixture of weighted commodities: coal 12%, copper (proxy for base metals) 40%,
gold 32%, platinum 8% and iron ore 8%; arrow indicates weekly change.
80
100
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0
10
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
11
STABILITY PROFITABILITY GROWTH
MECHANICAL CUTTING
BUSINESS PORTFOLIO
12
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
13
STABILITY PROFITABILITY GROWTH
ROCK TOOLS
BUSINESS PORTFOLIO
14
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
15
STABILITY PROFITABILITY GROWTH
SURFACE DRILLING
BUSINESS PORTFOLIO
16
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
17
STABILITY PROFITABILITY GROWTH
CRUSHING & SCREENING
BUSINESS PORTFOLIO
18
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
19
STABILITY PROFITABILITY GROWTH
LOAD AND HAUL
BUSINESS PORTFOLIO
20
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
21
STABILITY PROFITABILITY GROWTH
UNDERGROUND DRILLING
BUSINESS PORTFOLIO
22
STABILITY PROFITABILITY GROWTH
CHALLENGES AND OPPORTUNITIES
BUSINESS PORTFOLIO
ROCK TOOLS
MECHANICAL CUTTING
LOAD & HAUL
SURFACE DRILLING
CRUSHING &
SCREENING
UNDERGROUND
DRILLING
KEY STEPS TO TRANSFORM AFTERMARKET
23
Transparency of the installed fleet and understanding
of lifecycle support needs.
1
One customer offering with higher presence and
closeness to the fleet. 2
Customer experience supported both through Sandvik
support centers and highly automated e-commerce platform. 3
4 Strong execution focus and enabled sales force.
AFTERMARKET VISION
& RECENT DEVELOPMENT AFTERMARKET DEVELOPMENT
2014 2015 2016 2017
Weighted Commodity Production Growth
PARTS Sales growth (excl. Currency)
YOY GROWTH VS WEIGHTED
COMMODITY PRODUCTION
25
MY SANDVIK SERVICES
Connected
equipment
Collection, transfer and
visualization of data on fleet
health and status
Remote and real-time support
for planning and monitoring
across sites
Analytics and
process optimization
Solutions based on processed
data from equipment, rock
tools, customers’ systems,
environment
Predictive insights and real-
time analytics to improve
operator & asset performance
Autonomous
equipment & features
Onboard autonomous
features, smart rock tools &
systems for remote to
autonomous operations
Support or fully take over
manual tasks
DIGITAL OFFERING FRAMEWORK
Equipment & Applications
Hardware, Software, Services
What
it is
How it
creates
value
SAFE,
COST
EFFECTIVE
MINING
Increase Production
Reduce Cost
Improve Health & Safety
Utilization Availability
Transparency
Control
OPEX
CAPEX
Exposure
Hazards
Work Environment
ELIMINATE
UG EXPOSURE
TRACKING &
REPORTING
LESS
DOWNTIME
CONSISTENT
OUTPUT
HIGH-SPEED
PRODUCTION CONTINUOUS
OPERATION
AREA
ISOLATION
OPERATOR
COMFORT
REDUCED
DAMAGE
MULTI-MACHINE
CONTROL
WHY DIGITALIZATION?
OPTIMIZED OPERATIONS
Integrated with customer
digital ecosystem
IDENTIFY AREAS
OF IMPROVEMENT
PREDICT
WITH ACCURACY
REALIZE VALUE
BY TAKING ACTION
Proprietary predictive models for
process optimization
1 2 3
4
FROM DATA TO ACTION
3D Mine Visualizer
Task Management
Drill Plan Visualizer
Scheduling
Location Tracking
Optimization Experts (T4M) Big data from Sandvik global fleet and
customer systems
OptiMine Analytics OptiMine Short Interval Control
OPTIMINE®
CUSTOMER OUTCOME MORE, LOWER-COST & SAFER TONS
TIME
24 12 0 8 4 16 20
PR
OD
UC
TIO
N R
AT
E
0
5
10
15
20
25
30
35
Today
Shift
change Delay Scheduled
loss
Unscheduled
loss
Sandvik DD422iE
CUSTOMER OUTCOME MORE, LOWER-COST & SAFER TONS
TIME
24 12 0 8 4 16 20
PR
OD
UC
TIO
N R
AT
E
0
5
10
15
20
25
30
35
Automation
Information
Today
Sandvik DD422iE
ANNOUNCING A NEW GLOBAL PARTNER:
EXPANDING THE DIGITAL ECOSYSTEM
END-TO-END PROJECTS
FAST AND SECURE
COMPLEMENTARY
PRODUCTS
SOLUTION
TAILORED
FOR MINING
CUSTOMERS
• Mine Control Room
• Automation Systems
• Connected Equipment Platform
• Analytics & Process Optimization
• Security
• Access Points
• Wireless Controllers
• Routing & Switching
COMMERCIAL LOGIC OF DIGITAL OFFERING
Distance from
traditional
business model
Time
Technology leadership
More, better and safer tonnes
for customers - increased
competitiveness
Expand market size
Previously unfeasible
deposits are now mined
Gain share
Contracts where
productivity upside is
shared
Pay-for-performance
Performance agreements
increase loyalty and
aftermarket wallet share
Increased utilization
More equipment hours
increase consumable
sales
Digital revenue
Project implementation,
license and service fees
PREMIUM PRICING
& MARKET SHARE
1
ADDITIONAL REVENUE
& PROFITABILITY
2
NEW SOURCES OF
REVENUE
3
CUSTOMER COST
PER TONNE
SANDVIK VALUE
PER TONNE
End Game:
• Example: Resolute Mining (ASX:RSG)
will develop their greenfield
underground gold mining operation in
Mali around a fully automated Sandvik
production system
AUTOMINE® IS NOW VIEWED AS A “MUST
HAVE” IN MANY MARKETS
AUTOMATION HAS HIT A TIPPING POINT
11
Resolute’s journey to automation A journey towards improved safety and cost reduction
• A clear management focus on safety, innovation and
cost reduction
• Sandvik’s integrated product package provides a full
service of proven technologies and equipment
• Innovation and technology rather than cost cutting
delivers long term improvement
• Syama is a unique opportunity to bring together a
suite of proven technologies into a greenfields project
• A vision for a remote operations centre
Slide used with permission of Resolute.
THANK YOU