SANDVIK AB - SDVKF STOCK NEWS

Sandvik has successfully acquired DSI Underground, a leader in ground support products for underground mining and tunneling. The acquisition, valued at approximately EUR 943 million, is expected to slightly positively impact Sandvik's earnings per share. DSI Underground generated around EUR 516 million in revenues in 2020. The acquisition will lead to DSI Underground forming its own division within Sandvik Mining and Rock Solutions, bolstering Sandvik's market position in the sector.

Sandvik has announced its acquisition of South African company Kwatani, a key supplier of screens and feeders for the mining sector. This strategic move aims to enhance Sandvik's position in rock processing and expand its equipment range, particularly in Africa. Kwatani, which generated approximately 175 million SEK in revenue in 2020, will be integrated into Sandvik Rock Processing Solutions. The deal, expected to close in Q4 2021, aims to bolster Sandvik's capabilities in comminution while having a neutral initial impact on Sandvik's earnings per share.

Sandvik reported its third quarter 2020 results, showcasing strong financial performance. Key highlights include an order intake of 19,909 million SEK and revenues of 20,145 million SEK. The operating profit stood at 3,459 million SEK, with an operating margin of 17.2%. Profit after financial items reached 3,988 million SEK. Earnings per share were 2.54 SEK, indicating financial stability.

Sandvik will establish a new business area, Sandvik Rock Processing Solutions (SRP), effective January 1, 2021. This division will encompass the current Crushing and Screening division, which is part of Sandvik Mining and Rock Technology. The move aims to enhance growth in rock processing due to differing competitive landscapes. SRP generated approximately SEK 7.4 billion in sales with a 15.9% operating profit margin in 2019. Anders Svensson is appointed as the President, while Sandvik Mining and Rock Technology will be renamed Sandvik Mining and Rock Solutions on the same date.

Sandvik's Board of Directors has announced plans to distribute Sandvik Materials Technology (SMT) to shareholders and list its shares on the Nasdaq Stockholm Exchange. The proposal will be presented at a shareholders' meeting in 2022, contingent on favorable circumstances. The Board believes that separating Sandvik and SMT will enhance long-term shareholder value. Key executives expressed confidence in this strategic direction, stating that both entities can thrive independently. Further updates will be provided as the process progresses.

Sandvik has announced the divestiture of its Exploration business to Drillman, a subsidiary of the M Group, based in Australia. The deal, which includes exploration rigs and trademarks, is aligned with Sandvik’s strategy to enhance efficiency and profitability. In 2019, the Exploration business generated revenues of approximately SEK 450 million but had a slightly dilutive impact on Sandvik Mining and Rock Technology's margins. The transaction is awaiting regulatory approvals, with closure expected in Q4 2020.

SANDVIKEN, Sweden, September 28, 2020 – Sandvik is set to release its third-quarter results on October 16, 2020, around 11:30 CEST. A conference call will follow at 13:00 CEST featuring President and CEO Stefan Widing and CFO Tomas Eliasson. Investors and analysts can access the presentation live via Sandvik's website. For those wishing to join the conference call, dial-in details are provided for Sweden, the UK, and the US. Presentation slides will be available from 12:30 CEST on the company’s website.