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 MINEXPO 2016

1

SAFETY FIRST

Sandvik’s objective is zero harm to our

people, the environment we work in, our

customers and our suppliers.

2

PROTECTIVE

EQUIPMENT

ASSEMBLY

POINT

EMERGENCY

EXIT

EMERGENCY

NUMBER ALARM

3

• Sandvik direction

• The new Business Area – SMRT

• Our Focus

• New product highlights

• Summary

TOPICS FOR TODAY

4

TOPICS FOR TODAY

• Sandvik direction

• The new Business Area – SMRT

• Our Focus

• New product highlights

• Summary

5

CONSOLIDATION TO THREE BUSINESS AREAS

MATERIALS

TECHNOLOGY MACHINING

SOLUTIONS

MINING AND ROCK

TECHNOLOGY

BUSINESS AREAS – OUR PORTFOLIO

16%

7%

39%

58%

39%

30%

6

Share of revenues 2015 excl. Mining

systems and group activities

Share of adjusted operating profit 2015,

excl. Mining systems and group activities

Other operations (non-strategic assets)

contributed by 6% to revenues 2015

and 5% to adjusted operating profit 2015

SANDVIK

MACHINING SOLUTIONS

SANDVIK

MATERIALS TECHNOLOGY

SANDVIK MINING AND

ROCK TECHNOLOGY

IN THE BUSINESS AREAS

7

DIFFERENT CHALLENGES AND OPPORTUNITIES

SANDVIK MACHINING

SOLUTIONS

34 BSEK

SANDVIK MATERIALS

TECHNOLOGY

14 BSEK

STABILITY PROFITABILITY GROWTH

CREATE A STABLE

PLATFORM

IMPROVE

PERFORMANCE

GENERATE

GROWTH

SANDVIK MINING AND

ROCK TECHNOLOGY

33 BSEK

8

TOPICS FOR TODAY

• Sandvik direction

• The new Business Area – SMRT

• Our Focus

• New product highlights

• Summary

DECENTRALIZED BUSINESS MODEL with eight application-focused product areas

9

GLOBAL SALES ORGANIZATION

SMALL BUSINESS AREA COMMON TEAM

MERGER OF TWO BUSINESS AREAS sharing common products, technology, infrastructure

OPERATING PRINCIPLES

SANDVIK MINING AND ROCK TECHNOLOGY

10

ORGANIZATION

SANDVIK MINING AND ROCK TECHNOLOGY

FINANCE (Finance, IT, Legal,

Compliance)

Fredrik Westin

MID-MARKET

Kobus Malan

HR (HR and EHS)

Johan Hedlund

STRATEGY

Snejana Koleva

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

Jan Petzold

3,50,43,3

33,12,28,6

22,4

11

MRT MINING

-0.2

14.7

MARGIN, PERCENT

EXTERNAL INVOICING, BSEK OPERATING PROFIT*, BSEK

* ADJUSTED FOR ONE-OFF ITEMS

FY 2015

SANDVIK MINING AND ROCK TECHNOLOGY

DRILLING &

COMPLETION

CONSTRUC-

TION

MRT MINING DRILLING &

COMPLETION

CONSTRUC-

TION

4.5 -8.5 10.5

12

APPLICATIONS OFFERING

SANDVIK MINING AND ROCK TECHNOLOGY

UNDERGROUND HARD ROCK

MINING COMMI-NUTION

SURFACE DRILLING

DEMOLITION& RECYCLING

SOFT ROCK MINING

MINING EXPLORA-

TION TUNNELING OIL&GAS

EQUIPMENT

AFTERMARKET

STRONG MOMENTUM WEAK MOMENTUM STABLE MOMENTUM

2015

Aggregates

Demolition & Recycling

Tunneling

13

SMRT EXPOSURE

CONSTRUCTION

INDUSTRY EXPOSURE

MINING

COMMODITY EXPOSURE

Gold

Copper

Other base metals

Coal

PGM

Iron ore

INVOICING with Mining Systems

INVOICING without Mining Systems

Other metals Diamonds Other minerals

Gold

Copper

Other base metals Coal

PGM

Iron ore

Other metals

Diamonds Other minerals

2011 2015

INVOICING

14

STABILITY PROFITABILITY GROWTH

CHALLENGES AND OPPORTUNITIES

PRODUCT AREAS

ROCK TOOLS MECHANICAL

CUTTING

LOAD & HAUL

SURFACE DRILLING

CRUSHING & SCREENING

UNDERGROUND

DRILLING

15

TOPICS FOR TODAY

• Sandvik direction

• The new Business Area – SMRT

• Our Focus

• New product highlights

• Summary

Increase pace Deliver fundamentals

Strengthen leadership and adjust portfolio

16

SAFETY

Product transfers and site closures

Installed base infrastructure, Customer service center

Automated equipment

Sales heat map

Advanced services, Data driven productivity

‘Game changer’ New products & features

SUPPLY CHAIN

AFTERMARKET

OFFERING

SALES

WORLD CLASS SAFETY – ZERO HARM

Lean transformation

Finalize footprint program

Account management, Value selling

Sourcing

Headcount

Decentralization and

end-to-end responsibility

COST/CAPITAL

EFFICIENCY

SAFETY CULTURE

STRATEGIC FOCUS NEAR TERM

2014-15 2016-18

SANDVIK MINING AND ROCK TECHNOLOGY EBIT IMPROVEMENT

17

Aftermarket

penetration

Merger &

decentraliza-

tion savings

Cost

efficiencies

Footprint New

products and

technologies

PROFITABILITY

2015 PROFITABILITY

2018

Enable effective market share growth

Prioritize targeted customer activities

Fit portfolio development to active fleet

Tailor customer offering

18

AFTERMARKET

PRO-ACTIVE IN A CHALLENGING MARKET

>90%

accuracy

of active

fleet

NEW CUSTOMER

E-SOLUTIONS

GLOBAL ROLL-OUT

CUSTOMER SERVICE

CENTERS

CUSTOMER

UNDERSTANDING

IMPROVEMENT

19

CAPTURE

PARTS POTENTIAL

+8.5%

2013 2015

AFTERMARKET

LIFTING CUSTOMER EXPERIENCE

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.

SANDVIK MINING AND ROCK TECHNOLOGY TECHNOLOGY LEADERSHIP

20

GLOBAL R&D LEADER

60 R&D CENTERS

2,700 EMPLOYEES GLOBALLY

3 BILLION SEK

INTO R&D

EACH YEAR

8,000 ACTIVE PATENTS

AND OTHER

IP RIGHTS

NORTH

AMERICA

SOUTH

AMERICA

ASIA

AUSTRALIA

EUROPE

WE ARE BUILDING FOR TOMORROW

DRILLING SYSTEMS

AUTOMATION ALTERNATIVE

POWER SOURCES

MATERIALS

TECHNOLOGY

DATA-DRIVEN

PRODUCTIVTY

INDUSTRY

4.0

DIGITAL OFFERING

AND SERVICE

TECHNOLOGY IN

AFTERMARKET

BATTERY TRAMMING

• World's first Battery-powered underground

development rig

• Charging-while-drilling technology inside

• Product launch at MINExpo 2016

23

SANDVIK DD422iE

SANDVIK TESTMINE

24

Layout and functions

AUTOMINE®

Data exchange with mining IT systems

Surface Drills

Underground Drills

Loaders

Trucks

25

26

76100 -24%

AUTOMATED MANUAL

221

100

+121%

MANUAL AUTOMATED

LOADER

PRODUCTIVITY INDEXED

COST

PER TON INDEXED

OFFERING

AUTOMINE® PRODUCTIVITY IMPROVEMENTS

100

~50

-50%

COST

PER TON INDEXED

AUTOMATED MANUAL

NORTH PARKS AUTOMATED LOADING

27

OPTIMINE®

Monitoring

Location Tracking

Scheduler

Data exchange with mining IT systems

Task Management

28

BREAKDOWN DATA

PRODUCTION DATA

TIME MODEL

OEE ANALYSIS • GAP ANALYSIS

• VALUE PROPOSITION

BREAKDOWN DATA

SENSOR DATA

PREDICTIVE MODELING • SUPPORT VECTOR MACHINES

• RANDOM FOREST

• ANOMALY DETECTION

• ACTIONABLE INFORMATION

• PROOF OF MODEL ~80% CERTAIN

(ENGINE AND TRANSMISSION)

DATA INPUT DATA USE OUTPUT

SUBJECT MATTER

EXPERTISE

CU

ST

OM

ER

DATA DRIVEN PRODUCTIVITY ANALYSIS: INPUTS AND OUTPUTS

Mine Network

Monitoring Application

Wlan HotSpots

Public Internet

HTTP, Email,

SQL Views

Email Server

3rd Party SystemsSQL Views, W

eb

Services, File

transfe

rs

SMTP

OnSIte Reports

Remote Reports

30

31

TOPICS FOR TODAY

• Sandvik direction

• The new Business Area – SMRT

• Our Focus

• New product highlights

• Summary

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.

SANDVIK DD422iE

32

E- DRIVELINE

33

Sandvik DD422iE

- Highly automated mining jumbo with

electric driveline system

- Tramming energy taken from onboard

batteries

- Sodium- Nickel cloride based battery

chemistry

- Battery charging via mine electrics during

drilling (patented feature)

- Active power compensation

(patented feature)

• Better Health & Safety - Zero emissions, Less heat and noise, Optimised operator ergonomics

• Increased Drilling productivity - Active power compensation, Patented charging while drilling technology

• Reduced operating costs - Savings in maintenance costs, Savings in fuel logistics and ventilation costs

• Energy efficiency - Electric motor i/o diesel engine for tramming, Regenerative braking system

E- DRIVELINE

34

Sandvik DD422iE

LESSHOSE BOOM

35

Sandvik DD422iE

- Common rail hydraulics for boom movements

- Integrated and standardised valve and controller box

per each boom joint

- CAN bus connection between the Boom control PC

and valve controllers

- Reduction of hydraulics hoses (from 240m to 100m)

Better visibility

Less hose damages

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 LH307B BATTERY LOADER

SANDVIK LH307B BATTERY LOADER

• 6.7 tonne Payload Capacity

• Shared components with diesel LH307.

• Comparable or better performance with Zero

Exhaust Emissions for improved mine health &

safety.

• No trailing cable - unlimited tramming distance

for greater versatility and productivity.

• Sandvik Automine™ and Optimine™

compatible.

SANDVIK LH307B

38

BATTERY LOADER

• High quality Lithium Titanate Oxide (LTO)

battery with liquid cooling.

• Highly Safe - resistant to internal short

circuit and thermal runaway.

• Long Battery Lifetime - potentially lasting life

of the loader (15,000 cycles).

• Quick Charging in around 15 minutes with no battery swapping.

• Operator can charge loader during morning / afternoon break.

• Eliminates the need for battery swapping during a shift.

39

TOPICS FOR TODAY

• Sandvik direction

• The new Business Area – SMRT

• Our Focus

• New product highlights

• Summary

SUMMARY

40

Decentralized organization to drive speed and efficiencies

Aftermarket with solid foundation to drive parts sales/unit

− >90% transparency on installed fleet

− Closeness to customer through e-solutions, customer service centers

− Data analytics

Automation & innovation delivering productivity gains to our customers

Execute profitability and net working capital reduction through Product Areas

41