Annual Report 2023

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Overview

Sandvik Mining and Rock Solutions

Record levels of order intake and revenues contributed to a strong year for Sandvik Mining and Rock Solutions. Growth was driven by progress in key strategic focus areas such as electrification, surface drilling and automation, as well as product launches in core areas.

Sandvik Mining and Rock Solutions is a global leading supplier of equipment and tools, parts, service, digital solutions and sustainability-driving technologies for the mining and infrastructure industries. We provide high-performing products and services that increase our customers’ productivity and safety, extend uptime, and reduce costs and environmental impact. 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 through fully electric and mine automation solutions and end-to-end optimization via connected digital services, including remote monitoring services. Our mine automation systems cover all aspects of automation, from single pieces of equipment to full fleet control.

Market overview

The global mining industry was stable at high levels throughout 2023. The need for more minerals and metals for the green transition and global GDP growth continued to drive strong demand and high commodity prices. Inflationary pressures and energy costs did not impact global mining demand. The market continues to show strong interest in the sustainable solutions and digital technologies necessary for the mine of the future. Infrastructure demand was soft, particularly in Europe.

2023 in figures

Commodity exposure

S u s t a i n a b i l i t y S h i f t C u s t o m e r ’ s 1 s t C h o i c e A g i l e t h r o u g h c y c l e E m p l o y e r o f C h o i c e D i g i t a l S h i f t S h i f t t o G r o w t h C u s t o m e r F o c u s P a s s i o n t o W i n I n n o v a t i o n 35 %23 % 12 %9 %3 % 2 %16 % Guld K oppa r K ol Zink/Nic k el Järnmalm And r a basme t alle r Ö vrigt 1) 35%23% 12%9%3% 2%16% G old C op p e r C oal Zin c /Nic k el I r on o r e Othe r ba s e me t als Other 1)

Revenues by market area

S u s t a i n a b i l i t y S h i f t C u s t o m e r ’ s 1 s t C h o i c e A g i l e t h r o u g h c y c l e E m p l o y e r o f C h o i c e D i g i t a l S h i f t S h i f t t o G r o w t h C u s t o m e r F o c u s P a s s i o n t o W i n I n n o v a t i o n 24%21%20%15%10% 10% North AmericaAustralia Africa/Middle EastAsiaEuropeSouth America
Overview

 

2022

2023

Order intake, MSEK

62,895

64,527

Revenues, MSEK

56,843

65,690

Adjusted EBITA2), MSEK

11,643

13,716

Adjusted EBITA margin2) %

20.5

20.9

Return on capital employed, %

22.6

24.6

Number of employees3)

16,206

17,019

Gender balance (men/women), %

82/18

81/19

Women in managerial positions, %

18.7

20.1

Lost Time Injury Frequency Rate (LTIFR)

0.9

0.9

Total Recordable Injury Frequency Rate (TRIFR)

3.5

3.3

1)

Platinum, diamonds and other.

2)

Adjusted for items affecting comparability of SEK 67 million (–1,264).

3)

Full-time equivalent.

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 and deeper mines as well as safety requirements drive volume output and the need for semi-automated to fully automated solutions. Significant parts, services and consumables 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.

Related links
Development in business areas
Segment information