Your partner in mining and construction

1. Your partner in mining and construction

2. Environment, Health & Safety first Safety first everywhere our equipment is in use and in our own organization Our aim is to achieve zero work related injuries and illness EHS leadership from all employees Risk based EHS management systems Certification to OHSAS 18001 & ISO 14001 Sustainable and continual improvement 2

3. What do we do? • Sandvik is a high-technology engineering group with advanced products and a world-leading position in selected areas. • You will find the results of our know-how in mobile phones, in aircraft, in a human knee, in tunnels, in mines and in many other places.

4. Quality and productivityfor nearly 150 years • It all started back in 1862 when our founder, Göran Fredrik Göransson, commercialized the Bessemer method • He found ways to use it to increase productivity for his customers • He worked directly and closely to customers with a niche strategy • This is the way we still work, and will continue to work

5. A global leader in three core areas SANDVIKMINING AND CONSTRUCTION SANDVIKMATERIALS TECHNOLOGY SANDVIK TOOLING 19,000 MSEK 32,600 MSEK 15,300 MSEK

6. Sandvik key figures 2009 • Sales SEK 72 billion (2009) • 44,000 employees in 130 countries • 2,400 employees within R&D and 5,000 patents • Global leader in selected areas

7. Culture and core values • Our 44,000 employees speak many different languages and have varying ethnic backgrounds. However, they all share a common platform in Sandviks three core values: OPEN MIND FAIR PLAY TEAM SPIRIT

8. Project sales Sandvik Mining and Construction’s three customer segments UNDERGROUND MINING SURFACE MINING CONSTRUCTION

9. Widest offering in our industry • Rock tools and systems • Drill rigs and rock drills • Load and haul machines • Continuous mining and tunnelling machines • Crushers and screens • Conveyors and conveyor components • Bulk material handling equipment • Breakers and demolition tools • Global service and aftermarket

10. The Sandvik Mining and Construction numbers for 2009 • Sales MSEK 32,600 • Operating profit MSEK 466 • Profit margin 1.4% • ROCE 2.1% • 14,400 employees

11. 50 % of sales in the northern hemisphere Worldwidesales 50 % of sales in the southern hemisphere

12. Close to our customers all over the world • HEAD OFFICES • PRODUCTION • SALES/SERVICE DISTRIBUTION CENTER

13. Right part at the right placeat the right time everywhere Distribution Center Distribution Center Distribution Center Full Assortment Full Assortment Full Assortment

14. The people of Sandvik • We promote speed in decisions and actions • We are dedicated and finish what we start • We provide opportunities to think outside the box • We learn from our experiences

15. R&D that goes deep • Sandvik Mining and Construction invests heavily in “top of the line” product development • For new applications and processes • Together with the customers • Processes • Productivity •  Shorter time to market

16. Long term trends and business drivers MARKET Continued sustained demand Increased need for exploration New infra-structure investments TECHNOLOGY Safety and productivity drives mechanization and automation Surface to underground From drill and blast to continuous processes Mobile and flexible units Focus on productivity Energy efficiency and carbon foot print CUSTOMERS Consolidation through mergers and acquisitions Globalization, search for synergies Towards solutions applications and performance contracts Sustainability is an issue 16

17. The choice of the planet • Mining and construction are sensitive working areas • We develop new solutions that will minimize the environmental impact of the operational processes • In the end we help our customers to operate in a more sustainable way All major sites certified according to ISO 14001 Clear goals for R&D Environmental risk assessment Education and training programs

18. Customer focused organization Customer Global sales and service Customer segments UNDERGROUND MINING SURFACE MINING CONSTRUCTION Staff functions Supply functions

19. We are open to meet customer needs Excavated tonne/per meter Performance per unit Parts and service Product supplier Customer performance

20. Our lifecycle approach gives us a competitive edge • For us at Sandvik, lifecycle approach goes beyond products and services • Ultimately it’s about a long-term commitment to building close customer relations

21. The sum of all parts makes us unique • We strive for excellence in the smallest detail • But it is the whole composition of Sandvik that sets us apart • Our experience, application know-how and service organization WE ALL SHARE THREE CORE VALUES - Open mind - Team spirit - Fair play • WE ARE TECHNICALLY ADVANCED • Automation • Monitoring • Mobile communications • Remote mining • WE HAVE CLOSE CUSTOMER RELATIONS • Processes & applications • Wide offering - Long experience - Ultimate productivity partner • GLOBAL • APPROACH • Service organization • Common policies • Alignment of resources • Competitive stronger, long-term partner

22. Your partner in mining and construction 22

23. Strategiskt inköps ”verktygs kit” Sandvik Mining and Construction IT Kicki Källström

24. Supply Chain • Global Supply Chain processes

25. SMC Purchasing Strategy • Global Sourcing teams to manage sourcing of key categories • Develop one optimized SMC supplier base • Expand low cost country sourcing significantly, with regional sourcing offices in key countries • Leverage Sandvik Group to optimize SMC indirect spend • Drive down product cost by standardization, modularization and challenging engineering specifications • Develop competencies, best practises, KPI´s, common processes and tools • Increase share of electronic transactions to reduce lead-time and administration

26. Purchasing

27. Sourcing – focus on direct material

28. Sourcing Tools

29. Partnermanager – supplier register

30. Reports – Reporting Services - Common

31. Reports

32. SMC Global Sourcing project database