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 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 the purpose “We make the shift – advancing the world through engineering” and the Code of Conduct, they guide us in our daily business decisions and form a solid platform for our strategy.
The strategy includes six strategic objectives for which we have defined 2025 targets and key results. We have a strong platform to build on with market-leading positions and strong brands, and we are number 1 or 2 in the market segments we operate in. Our business model is built around helping our customers become more productive, efficient and sustainable, with innovation at the core of our culture. We are financially strong with a strong balance sheet and cash-flow generation in combination with a margin that is resilient across a business cycle.
The strategy relies on a number of common strengths across our Group: being close to the customer with a decentralized way of working and leading brands, digitalization and automation, a strong performance culture and modern leadership that focuses on ensuring high employee engagement.
Shift to growth
2025 targets
- Total growth of 7 percent (CAGR) at fixed exchange rates over a business cycle
- New Sales Ratio of 30–35 percent, defined as share of sales of products younger than 5 years
2023 key results
- Total growth was 9 percent (CAGR vs 2019) at fixed exchange rates
- New Sales Ratio of 25 percent
Digital shift
2025 targets
- Software and digital sales (rolling 12M) of SEK 6.5 billion
- 70 percent of our sites to have modern Enterprise Resource Planning (ERP) platforms implemented to enable a seamless flow
2023 key results
- Software and digital sales amounted to SEK 4.9 billion (4)
- 45 percent (45) of our sites had implemented modern seamless flow platforms
Sustainability shift
2025 targets
- Reduce greenhouse gas emissions by 25 percent
- 80 percent waste circularity
2023 key results
- Greenhouse gas emissions increased by 1 percent in 2023. Compared to the baseline (2019) they have decreased by 23 percent
- Waste circularity amounted to 71 percent (73)
Agile through cycle
2025 targets
- Adjusted EBITA margin (rolling 12M) within the range of 20–22 percent over a business cycle
2023 key results
- Adjusted EBITA margin amounted to 20.0 percent (20.0)
Customer’s first choice
2025 targets
- 100 percent of our divisions to measure customer satisfaction and show verified improvements
2023 key results
- All divisions have established methods to measure customer satisfaction
Employer of choice
2025 targets
- 25 percent female managers
- Employee engagement rate above 80 percent
- Total Recordable Injury Frequency Rate (TRIFR) at 2.7
2023 key results
- At year-end, 20.5 percent (19.6) of our managers were women
- The employee engagement rate was 78 percent (78)
- The Total Recordable Injury Frequency Rate was 3.0 (3.1). Compared to the baseline (average 2016–2018) it has decreased by 21 percent.
Our purpose: We make the shift – advancing the world through engineering
Our purpose captures our ambition whereby our innovative solutions make the shift in areas such as digitalization and sustainability, creating value for customers, employees and communities, ultimately leading to shareholder value.
Our core values of customer focus, innovation, fair play and passion to win 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 with high standards for business conduct.
Passion to win
We strengthen our market leadership through strong performance management, continuous improvement and empowered people. We are passionate about making our company number one.