G3 Categories of revenue
|
2022 |
2023 |
||||||
|---|---|---|---|---|---|---|---|---|
Primary geographical markets |
SMR |
SRP |
SMM |
Total |
SMR |
SRP |
SMM |
Total |
Europe |
5,867 |
2,130 |
21,901 |
29,899 |
6,809 |
2,187 |
24,573 |
33,569 |
North America |
12,473 |
2,353 |
13,000 |
27,825 |
15,551 |
2,426 |
13,863 |
31,840 |
South America |
5,316 |
1,032 |
1,069 |
7,417 |
6,285 |
1,485 |
1,169 |
8,939 |
Africa and Middle East |
11,553 |
1,063 |
411 |
13,027 |
13,442 |
1,269 |
502 |
15,213 |
Asia |
9,556 |
2,224 |
9,163 |
20,944 |
9,967 |
2,188 |
8,890 |
21,046 |
Australia and New Zealand |
12,078 |
785 |
357 |
13,220 |
13,637 |
1,917 |
342 |
15,896 |
Total |
56,843 |
9,587 |
45,901 |
112,332 |
65,690 |
11,472 |
49,340 |
126,503 |
Major goods/service lines |
|
|
|
|
|
|
|
|
Sale of goods |
52,656 |
9,309 |
42,162 |
104,126 |
59,124 |
10,463 |
45,277 |
114,864 |
Rendering of services |
3,314 |
275 |
3,717 |
7,306 |
5,631 |
997 |
4,030 |
10,658 |
Rental income |
849 |
3 |
9 |
861 |
903 |
11 |
6 |
919 |
Other non product related Revenue |
24 |
1 |
14 |
39 |
33 |
1 |
28 |
62 |
Total |
56,843 |
9,587 |
45,901 |
112,332 |
65,690 |
11,472 |
49,340 |
126,503 |
|
|
|
|
|
|
|
|
|
Order backlog to be recognized as revenue after 2024. |
2,277 |
10 |
38 |
2,324 |
2,360 |
23 |
– |
2,383 |
§ Accounting principles
Sale of goods
Revenue from goods sold (e.g., metal cutting tools, mining equipment) is recognized at a point in time when the control has been transferred to the customer. For sale of goods the transfer of control usually occurs when the significant risks and rewards are transferred in accordance to the Incoterms. For changes in contract assets and liabilities, see note G20 and G25.
When goods sold are highly customized and there is an enforceable right to payment for performances completed to date, the goods are recognized over time. Progress of satisfaction of each performance obligation is used to measure the revenue by the proportion of cost incurred to date compared to estimated total cost of each performance obligation.
Payment is generally due between 30–90 days from the transfer of control. In some contracts, short-term advances are required before the equipment is delivered.
Rendering of services
Revenue from service contracts (e.g., installation, support and maintenance) is recognized over time since the customer receives and consumes the benefits as it is being provided. Progress of satisfaction of each performance obligation is used to measure the revenue by the proportion of cost incurred to date compared to estimated total cost of each performance obligation.
Payment is generally due between 30–90 days after completion.
Variable consideration
Some customer contracts contain right of return, late delivery penalties, volume rebates and trade-in, which give rise to variable consideration subject to constraint. Such variable consideration have been considered as part of the revenue recognition.
Significant financing component
Sandvik applies the practical expedient to not calculate and account for significant financing component if the period between the transfer of a good or service to a customer and payment is 12 months or less.
Cost to obtain a contract
Sandvik applies the practical expedient to recognize an incremental costs of obtaining a contract as an expense when incurred if the contract period is one year or less.
Licenses
Revenue from licenses is recognized at point in time if the customer can use the license in its current functionality and no further updates or improvements are expected or required. If the customer has the right to access the license including future updates with improved functionality, the revenue from those licenses is recognized over the contract period.