Board statement on dividend proposal

Board statement in accordance with Chapter 18, Section 4 of the Swedish Companies Act.

The nature and extent of the company’s operations are stated in the Articles of Association and issued annual reports.

Such nature and extent do not entail risks over and above those inherent, or reasonably to be expected, in the industry or otherwise inherent in business operations. For information on significant events, reference is made to the Directors’ Report.

The company’s financial position at 31 December 2019 is apparent from this Annual Report. The proposed dividend does not infringe on investments deemed to be required.

In addition, the company’s liquidity reserve is in the form of an unutilized revolving credit facility amounting to 9,000 million SEK, which means that the company should reasonably be able to meet unexpected events and temporary fluctuations in cash flows of reasonable proportions. The company’s financial position supports the assessment that the company will be able to continue its business and meet its obligations in both the short and long term.

In view of the above and based on what the Board is otherwise aware, the proposed dividend in the Board’s opinion is justified considering the requirements which the nature, extent and risks associated with the operations place on the size of the equity of the company, and also taking into consideration the company’s need to strengthen its balance sheet, liquidity and financial position in general.

Stockholm, 1 March 2020

Sandvik Aktiebolag (publ)

Board of directors