G32 Divestments, assets held for sale and discontinued operations
The divestments of business combinations executed in 2022 and 2023 are specified below.
Business area |
Company/Unit |
Divestment date |
Annual revenue |
No. of employees |
|---|---|---|---|---|
2022 |
|
|
|
|
Sandvik Mining and Rock Solutions |
DSI Techno LCC |
July 7, 2022 |
120 MSEK 12M |
38 |
Sandvik Materials Technology |
Distribution of Alleima |
August 30, 2022 |
13,405 MSEK in 2021 |
5,726 |
2023 |
|
|
|
|
Sandvik Mining and Rock Solutions |
Fero Reinforcing |
July 12, 2023 |
307 MSEK in 2022 |
41 |
Sandvik Mining and Rock Solutions |
Siberia GT LLC |
November 23, 2023 |
N/A |
N/A |
Sandvik Mining and Rock Solutions |
DSI Tunneling |
November 30, 2023 |
145 MSEK in 2022 |
24 |
Divestments and assets held for sale
Sandvik had no divestments with major impact during 2023. As part of the liquidation process of Sandvik’s former operations in Russia communicated in 2022, a (minor) legal entity was divested during the fourth quarter 2023. The divested entity’s operations had already been discontinued. The divestment had a negative cash flow effect on the Group of SEK –209 million, and resulted in a gain of SEK 230 million, driven by accumulated FX gains in equity.
During the year Sandvik also divested DSI Tunneling LLC, which resulted in a gain of SEK 16 million, and sold the assets of Fero Reinforcing Pty Ltd.
As of December 31, 2023, the Group recognizes SEK 154 million of assets held for sale and SEK 36 million of liabilities directly attributed to assets held for sale. The full amounts are attributable to the Advanced Theodolite Technology business, reported within Sandvik Manufacturing Solutions. Final closing of the transaction is expected during the first quarter of 2024.
|
2022 |
2023 |
|---|---|---|
Intangible assets |
– |
6 |
Property, plant and equipment |
0 |
20 |
Other non-current assets |
60 |
–1 |
Inventories |
1 |
36 |
Receivables |
2 |
20 |
Cash and cash equivalents |
–63 |
216 |
Interest-bearing loans and borrowings |
–25 |
47 |
Other liabilities and provisions |
– |
– |
Deferred tax assets/liabilities, net |
0 |
–61 |
Net identifiable assets |
–25 |
283 |
Gain (loss) on divestments of business combinations |
14 |
243 |
Consideration received after divestment costs |
29 |
52 |
Less: Cash and cash equivalents in the divested entities |
–63 |
–216 |
Impact on the Group’s cash and cash equivalents, divested operations |
–34 |
–164 |
Discontinued operations
Sandvik had no discontinued operations during 2023. During 2022, Sandvik Materials Technology (SMT) (distributed to the owners and listed on Nasdaq Stockholm under the name Alleima on August 31, 2022) and the remaining part of the Mining Systems business was reported as discontinued operations.
|
2022 |
2023 |
|---|---|---|
Revenue |
11,121 |
– |
Cost of sales and services |
–7,209 |
– |
Gross profit |
3,912 |
– |
Expenses and other operating income, net |
–1,592 |
– |
Operating profit |
2,321 |
– |
Net financial items |
1,384 |
– |
Profit before tax |
3,705 |
– |
Income tax |
–874 |
– |
Profit from operations |
2,831 |
– |
Loss on remeasurements to fair value |
|
|
Profit (loss) from divestment |
–5,526 |
– |
Translation differences recycled |
1,067 |
– |
Loss for the period, Discontinued operations |
–1,628 |
– |
Whereof Mining Systems |
12 |
– |
Whereof Alleima |
–1,640 |
– |
|
2022 |
2023 |
|---|---|---|
Cash flow from operating activities |
–627 |
– |
Cash flow from investing activities |
–422 |
– |
Cash flow from financing activities |
–684 |
– |
Cash flow from discontinued activities |
–1,733 |
– |
§ Accounting principles
Assets held for sale and discontinued operations
Disposal groups held for sale
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.
Discontinued operations
To qualify as discontinued operations, a component of the Group must, in addition to having been classified as a disposal group held for sale, also represent a separate major line of business or be a part of a single coordinated plan to dispose of a separate major line of business.
Distribution to owners
The distribution of Alleima has been recognized and presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued operations and IFRIC 17 Distribution of Non-cash Assets to Owners.
The income statement of 2022 includes Alleima up to distribution. Alleima’s result for 2022 is presented separately within discontinued operations.