VINNOVA’s årskonferens den 27 november 2013Peter SamuelssonVice President and Head of R&D and Technology, Sandvik Materials Technology

Driving the materials evolution

Founded 1862 in Sandviken, Sweden

Göran Fredrik Göransson redesigned the Bessemer furnace to mass-produce steel

A breakthrough and an innovation started the company 150 years ago

Sandvik Machining Solutions

Heritage

2 VINNOVAs årskonferens den 27 november 2013

SandvikenHallstahammar

PuneZhenjiang

Research and developmentWorld leading in materials technology

R&D Centers

Product units with product and application development

Number one in metallurgy for our type of products.

Products developed in close co-operation with customers.

~900 material-codes for further processing into different niche applications.

3 VINNOVAs årskonferens den 27 november 2013

Sandvik SAF 2205™Duplex material

Sandvik SAF 2507™Super duplex material

Sandvik SAF 3207™Hyper-duplex material

Service temperature

Water depthworking pressure

Example:

Oil and gas industry

Sandvik materials evolution

4 VINNOVAs årskonferens den 27 november 2013

Demand for advanced materials is constantly increasing in attractive and fast growing segments such as energy (primarily oil/gas) and chemical.

Sandvik is well-positioned to take part of this growth.

With our unique expertise in materials technology there is also an opportunity to contribute to important technology shifts in these segments.

Well positioned for profitable growth

Market exposure: 44% of sales in segments

that grow 2-4 times more than GDP

Energy

Medical

Aerospace

Mining and Construction

Chemical

Consumer &Electronics

Automotive

General engineering

38%

Chemical

Consumer and Electronics

Automotive

General engineering Energy

Medical

AerospaceMining and Construction

Sandvik Materials Technology sales 2012

5 VINNOVAs årskonferens den 27 november 2013

Continue the materials evolution to be able to

meet the demands of our customer’s critical

applications in the most demanding industries.

Capitalize on our unique expertise in materials

technology to grow in the energy segment

(primarily oil/gas), to achieve >50% of sales

to the energy segment.

Make a true Step Change within safety,

with the ambition to achieve a lost time injury

frequency rate below 1.

Strategic compassOur direction

6 VINNOVAs årskonferens den 27 november 2013

Re-allocation of resourcesTo strategic and attractive growth areas

Increase capacity Improve cost positionthrough operational excellence

Selectively increase capacity and exits

Strategic expansion

Safety and replacement

Selective in growthareas

Business configuration

Strategicdirection

Growthcylinders

Strategy enablers

Manufacturing footprint

CAPEX

Go-to-marketShare of FTE

R&DExpenditure

Share of sales

2012 2020 2012 2020 2012 2020

Our missionHow we make a difference

”We apply our unique expertise in materials

technology to make industrial processes

safer and more efficient, yielding greater

output while consuming less resources.”

8 VINNOVAs årskonferens den 27 november 2013