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.
The strategy includes six strategic objectives for which Sandvik has defined 2025 targets and key results. We have a solid platform to build on with market-leading positions and strong brands.
The strategy relies on a number of common strengths across our Group: accountability and staying close to the customer through a decentralized way of working, leading brands, codes of conduct, a strong performance culture and modern leadership that focuses on ensuring high employee engagement.
Sandvik strives to be an enabler in our customers’ shifts through a strong focus on innovation and a leading offering in new technologies, digitalization, automation and sustainable solutions.
In recent years, Sandvik has been on a transformation journey that has strengthened the company, both in terms of growth potential and improved resilience. Our solid financial position and strong cash-flow generation enable us to continue to drive this transformation and consistently deliver on our strategy and targets.
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
2024 key results
- Total growth was 7 percent (9), CAGR vs 2019 at fixed exchange rates
- New Sales Ratio of 24 percent (25)
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
2024 key results
- Software and digital sales amounted to SEK 5.1 billion (4.9)
- 52 percent (45) of our sites had implemented modern seamless flow platforms
Sustainability shift
2025 targets
- Reduce greenhouse gas emissions in Scope 1–2 by 25 percent, compared to baseline 2019
- 80 percent waste circularity
2024 key results
- Compared to the baseline 2019, GHG emissions in Scope 1–2 have decreased by 47 percent (comparable data). The corresponding reduction in actual data is 20 percent
- Waste circularity amounted to 74 percent (73)
Agile through cycle
2025 targets
- Adjusted EBITA margin within the range of 20–22 percent over a business cycle
2024 key results
- Adjusted EBITA margin amounted to 19.2 percent (20.0)
Customer’s first choice
2025 targets
- 100 percent of our divisions measure customer satisfaction and show verified improvements
2024 key results
- All divisions have established methods to measure customer satisfaction
Employer of choice
2025 targets
- 25 percent female managers
- Employee engagement rate above 7.6
- Total Recordable Injury Frequency Rate (TRIFR) at 2.7
2024 key results
- At year-end, 20.5 percent (20.5) of our managers were women
- The employee engagement score was 7.7 (7.6) of a maximum 10
- The Total Recordable Injury Frequency Rate was 3.0 (3.2) Compared to the baseline 2019 it has decreased by 6 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 made 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.