Overview
A value creating strategy
Our strategy aims to create benefits for all our stakeholders – customers, employees and communities, ultimately leading to shareholder value. It rests on our core values, explicit target setting in six strategic areas and a decentralized way of working.
Our core values of Customer Focus, Innovation, Fair Play and Passion to Win represent the essence of the Sandvik culture. Together with our purpose “We make the shift – advancing the world through engineering” and our Code of Conduct, they guide us in our daily business decisions and form a solid platform for our strategy. We manage risks and seize opportunities in the surrounding world and we have defined six strategic objectives for growth and operational excellence.
Our strategy relies on a number of common strengths across the Group: being close to the customer with a decentralized way of working and leading brands, digitalization and automation, a strong performance culture and first-class leadership that focuses on ensuring high employee engagement.
Shift to growth
2025 targets
- A total growth of 7 percent (CAGR) at fixed exchange rates over a business cycle
- A New Sales Ratio of 30–35 percent, defined as share of sales of products younger than 5 years
2022 key results
- Total growth was 21 percent, of which organic growth was 8 percent
- We achieved a New Sales Ratio of 26 percent
Digital shift
2025 targets
- Software and digital sales of SEK 6.5 billion
- 70 percent of our sites to have modern Enterprise Resource Planning (ERP) platforms implemented to enable a seamless flow
2022 key results
- Sales from our software and digital offering (rolling 12M) amounted to close to SEK 4 billion (1.9)
- 45 percent (41) of our sites had implemented modern seamless flow platforms
Sustainability shift
2025 targets
- Reduce greenhouse gas emissions by 25 percent
- Achieve 80 percent waste circularity
- Achieve a Total Recordable Injury Frequency Rate (TRIFR) at 2.5
2022 key results
- Greenhouse gas emissions increased by 4 percent in 2022. Compared to the baseline (2016–2018) they have decreased by 35 percent
- Waste circularity amounted to 74 percent
- The Total Recordable Injury Frequency Rate increased to 3.1 (3.0). Compared to the baseline it has decreased by 18 percent
Agile through cycle
2025 targets
- Achieve an adjusted EBITA margin with the range of 20–22 percent over a business cycle
2022 key results
- The adjusted EBITA margin amounted to 20.0 percent (20.8)
Customer’s first choice
2025 targets
- 100 percent of our divisions to measure customer satisfaction and show verified improvements
2022 key results
- All divisions established methods to measure customer satisfaction
Employer of choice
2025 targets
- 25 percent female managers
- An employee engagement rate above 80 percent
2022 key results
- At year-end, 19.6 percent (19.6) of our managers were women
- The employee engagement rate was 78 percent (79)
Purpose and core values
We have a company purpose: We make the shift – advancing the world through engineering. It captures our ambition whereby our innovative solutions make the shift in areas such as digitalization and sustainability, creating value for employees, customers, shareholders and society.
Customer Focus, Innovation, Fair Play and Passion to Win are our core values. They capture the culture of the company and they guide us in our actions and daily business decisions.
Customer Focus: We constantly strive to exceed our customers’ expectations and enable them to excel in their business. We are decentralized and decisions are taken close to customers.
Innovation: We always strive for technology leadership and successful partnerships. We work to ensure everyday advancements and innovative shifts.
Fair Play: We put health and safety first. We are ethical and compliant and conduct our business sustainably.
Passion to Win: We establish our market leadership through strong performance management, continuous improvements and empowered people. We are passionate about making our company number one.