Sandvik Mining and Construction

Equipment, tools and services for mining and construction industries

Sandvik Mining and Construction

Key Figures - 2006

SMC Sales (BSEK)
30

Objectives Growth 6% ROCE 20 % EBIT 10-15 %

over a business cycle
To be revised 2007

25.0

20
16.6 13.5 13.8 14.3

20.6

10

10.2

EBIT ROCE

14.7 % 31.6 %

0.0
2000 2001 2002 2003

2004 2005 2006

Sandvik Mining and Construction

Main business drivers and trends

Market

Technology

Customers

Continued high demand Exploration activities increases Increasing lack of skilled people

Mechanization and automatization due to safety and productivity Surface to underground From drill & blast to continuous mining

Consolidation through M&As Globalization, search for synergies Junior miners

Sandvik Mining and Construction

Customer Expectations

Customer Performance Excavated Tonne / Per Meter

Per Unit/ Per Foot Parts & Service Unit Supplier

Sandvik Mining and Construction

Sandvik Mining and Construction Industry approach

9 Technically advanced
Automation, monitoring, mobile phone technology underground, remote mining, computerized units

9 Safety focused
No incident policy

9 Environmentally conscious
Sustainability enforces all aspects to be included for long term asset management

9 Global approach
Big mining houses apply common policies globally

9 Cross disciplined work force

Needs highly skilled people Needs attractive working conditions

Sandvik Mining and Construction

Customer focused organization

Customer
CHN NCE AFR CIS AUS USC APC SEM LAM

Customer segments

Logistics
Sandvik Mining and Construction

Common functions

Supply

Our history
Toro Driltech EIMCO EJC Secoma Rammer Roxon Voest-Alpine Tamrock Sandvik Rock Tools Drillmaster Mission MGT

Sandvik Mining and Construction

Shark SDS UDR Hagby-Asahi Implemin Bryt Beltreco BPI Svedala Toyo
1998 2006 2007

New strategy Applications & Solutions

Sandvik Mining and Construction

Sandvik Mining and Construction

customer focus
Underground Hard Rock Mining Underground Soft Rock Mining Surface Mining Construction Mineral Exploration

Sales by customer industries

Construction UG Soft rock mining Surface mining UG Hard rock mining Sandvik Mining and Construction Mineral Exploration

Sales by product type

Aftermarket parts, tools, consumables and services Equipment

Project sales

Sandvik Mining and Construction

Production Plants
Tychy, Poland Schppenstedt, Germany Zeltweg, Austria Chauny, France Lyon, France Arbr Haparanda Kping Sandviken Svedala Stockholm Sweden

Burlington Canada

Hollola Lahti Tampere Turku Finland

Bristol Dallas Alachua USA

Shanghai China

Santiago Chile Sao Paulo Brazil Johannesburg Delmas Krugersdorp South Africa Pune Patancheru India

Harare Zimbabwe

Mackay Newcastle Perth Sydney Tomago Australia

Sandvik Mining and Construction

Widest product range in the industry

z Rock Tools and Systems z Drill rigs and rock drills z Load and haul machines z Continuous mining and tunneling machines z Crushers and screens z Conveyors and conveyor components z Bulk material handling equipment z Breakers and demolition tools z Exploration drill rigs and tools

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 products 9 Environmentally friendly solutions 9 Utilizing group synergies

Sandvik Mining and Construction

Customer Partnerships
z Sandvik Mining and Construction z - the solutions provider
9 Deep and strong partnerships with customers
Sandvik and Lonmin signs Unique Collaboration Partnership Strategic Intent with Anglo Platinum

9 Help customers exceed and improve their productivity and performance

Training and Competence development together with customers Strong aftermarket development

9 Life time approach

Sandvik Mining and Construction

Sandvik looks through customers processes to find solutions

Rather than through Sandvik products to find customers

Sandvik Mining and Construction

Sandvik Mining and Construction

Sandvik Mining and Construction