Overview
Sandvik Mining and Rock Solutions
Sandvik Mining and Rock Solutions had a strong 2022 with solid demand and record levels of order intake. Innovative new product offerings and strong sales from parts, services and consumables drove organic growth. The acquisitions of Deswik and Akkurate strengthened our market position in mine planning software and electrification.
Sandvik Mining and Rock Solutions is a global leading supplier of equipment and tools, parts, service and digital solutions for the mining and infrastructure industries. We bring value to customers through high-performing products and services that increase productivity and safety and improve sustainability while extending uptime and cutting costs. Our product offering includes equipment for rock drilling, rock cutting, loading and hauling, tunneling and quarrying.
We are shaping the sustainable mine of the future, particularly through fully electric solutions, and increasingly offering solutions for mine automation and end-to-end optimization through connected digital services.
Market overview
Demand within the mining industry remained high throughout 2022. The growth was fueled by the consumption of more minerals and metals and high commodity prices, despite certain metal price decreases and rising costs due to inflation and high energy prices. The market was characterized by an increasing interest from the mining and infrastructure industries in sustainable solutions and digital technologies. Demand was also driven by a growing demand for copper and other electrification metals.
2022 in figures
Commodity exposure
Revenues by market area
MSEK |
2021 |
2022 |
||||||
|---|---|---|---|---|---|---|---|---|
Order intake |
47,460 |
62,895 |
||||||
Revenues |
41,409 |
56,843 |
||||||
Adjusted EBITA2) |
8,753 |
11,643 |
||||||
Adjusted EBITA margin2), % |
21.1 |
20.5 |
||||||
Return on capital employed, % |
31.2 |
22.6 |
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Number of employees3) |
15,574 |
16,206 |
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Gender balance (men/women), % |
82/18 |
82/18 |
||||||
Women in managerial positions, % |
19.4 |
18.7 |
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Lost Time Injury Frequency Rate (LTIFR) |
1.2 |
0.8 |
||||||
Total Recordable Injury Frequency Rate (TRIFR) |
3.8 |
3.4 |
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|
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Overview
Product portfolio
Equipment for drilling, bolting, cutting, loading and hauling. Drilling consumables (rock tools), service, spare and wear parts. Comprehensive digital solutions to drive efficiency and process optimization.
Market characteristics
Mining:
Consolidated customer base of some 200 global major and junior miners. Remote locations, decreasing ore grades as well as safety requirements drive volume output and the need for semi-automated to fully automated solutions. Significant business.
Infrastructure:
Sandvik is active in the niche area of rock excavation. The customer base is fragmented with more than 25,000 individual customers. Localized offering and local competition.
Demand drivers
Mining:
- GDP growth rate and resource-intensive industry development
- A growing middle class
- Metal and mineral prices
- Electrification
- Production levels in existing mines and expansion projects (greenfield and brownfield)
- Productivity improvements and new technology, for example automation and electrification
- Demand in the areas of environment, health and safety
Infrastructure:
- GDP growth/urbanization
- Infrastructure investments and spending
- Government stimulus programs
- Aggregates production
- Cement consumption
Competitive landscape/Major competitors
Mining:
Mainly global competitors such as Epiroc, Caterpillar and Komatsu Mining.
Infrastructure:
Some global competitors present in several niches: Epiroc, Caterpillar and Furukawa. Many local players.
Go-to-market model
Mining:
Direct sales approximately 95 percent with worldwide service network.
Infrastructure:
Due to a fragmented customer base, 50 percent of sales is via distributors. Global sales and service organization.
Growth strategy
Grow the parts, services and consumables business on the installed base. Expand market share in surface drilling. Climb the service ladder by data-driven productivity and advanced services. Automation, electrification and exploring complementary technologies and offerings through mergers and acquisitions.
Strategic risk management
Various forms of business environment risk with an impact on the mining and infrastructure market in general, such as increased market competition with new technological developments and the emergence of new competitors, fluctuations in commodity prices and compliance-related risks. Political uncertainty in some parts of the world.