SANDVIK TO ACQUIRE THE LEADING MINE
PLANNING SOFTWARE COMPANY

SAFETY FIRST
Sandvik’s objective is zero harm to ourpeople, the environment we work in,
our customers and our suppliers.
PROTECTIVE
EQUIPMENTFIRST AID
KIT

ALARM

EMERGENCYNUMBEREMERGENCY
EXIT

ASSEMBLYPOINT

PSYCHOLOGICALSAFETY

2HEALTH &WELL-BEING

STRATEGY EXECUTIONSHIFT TO GROWTH•Target of 2x market growth, organicand through acquisitions.

•Expand the digital offering toSEK 7.5 billion by 2025••

Lead automation, digitalization andelectrification
Drive sustainability and productivity
solutions in the customers value chain
through digital solutions.

DIGITALSHIFT

WE MAKETHE SHIFT
Advancing the world
through engineering

WORLD-LEADER IN UNDERGROUND MININGSANDVIK ROCKPROCESSING
SOLUTIONS (SRP)SANDVIK MINING AND
ROCK SOLUTIONS (SMR)

Exploration

Mineplanning

Drilling &Blasting

Rocksupport

Load &Haul

Parts & Services
Digital, Automation and Electrification Enablers

4Comminution

Material
handling

Mineralprocessing

Present SMR focus areas

DESWIK

#1 PROVIDER OF MINE PLANNING SOFTWAREOverview•

Leading mine planning software company
established in 2008•

Provider of integrated software platform supporting
mine digitalisation across all mine planning

Matt Chilcott
CEODeswik•

Subscriptions represent significant part of revenue•

Top profitability in niche•

Top tier customer base with low customer churn•

Diverse customer base across 60 countries•

Large and growing mine planning software market+10k79m~45% ~30%

Very strong position in underground hard rock mining

Software licenses

LTM Oct FY21
revenue (A$)

LTM Oct FY21
share of annual
recurring revenue•

6Geographic Presence

Office location
HQKey FactsEBITA margin

LEADING SOFTWARE AND SERVICES PORTFOLIOSOFTWARE PRODUCTS

Deswik.GeoTools

Deswik.MDM

Operations Planning and Control

Operational Geology

Mining Data Management

Deswik.OPS isa web-based, operations
scheduling, production
data management andcollaboration tool

Deswik.GeoTools software
includes Geological
Mapping, Face Sampling,
Ore Control and Drillhole
Optimizer modules

Integrated with Deswik.CAD,Deswik.MDM provides a spatial
database, stand-alone viewer
and process workflow
management tool for the entire
technical services department

Deswik.SchedDeswik.OPSDesign & Solids Modelling

Gantt Chart Scheduling

A fully featured CAD engine
designed to handle large
datasets, support for mining
specific objects and file types
and includes toolsets for allsectors

Encompassing both rate andduration-based scheduling(unrestricted by timescales), it
easily handles the large datasetsthat modern detailed planningrequires

Deswik.CAD

CONSULTING SERVICES

7

Mine Planning, Design andScheduling

Software Implementation

Scoping, pre-feasibility andfeasibility

Ongoing Engineering andtraining support

STRATEGIC FIT
SMR M&A Criteria
1FILLSA GAP

Expand software offering. Accelerate convergence of software and “digital mining” to enable full
end-to-end optimisation with opportunity to further drive automation for increased customer value
and productivity

2FINANCIALLY
SOUND ANDSTICKY

Leading profitability vs. peers. Deswik has strong above market growth, industry-leading
profitability and top-tier customers, all combined with a low customer churnGROW
3 RECURRING
REVENUES

8Comments

Subscription based. 10,000 active licenses and Deswik is increasing its share of recurring revenues
by shifting to a subscription model

4#1 POTENTIAL

Become undisputed leader. Deswik allow Sandvik to offer customers the undisputed leading software
suite for mine planning and operations management

5TECHNOLOGYLEADERSHIP

Leading innovator. Perceived as an innovative player with an attractive product offering, andwith best customer feedback among peers

STRENGTHENING OUR POSITION AS
WORLD-LEADER IN UNDERGROUND MININGSANDVIK ROCKPROCESSING
SOLUTIONS (SRP)SANDVIK MINING AND
ROCK SOLUTIONS (SMR)

Exploration

Mineplanning

Drilling &Blasting

Rocksupport

Load &Haul

Parts & Services
Digital, Automation and Electrification Enablers

9Comminution

Materialhandling

Mineralprocessing

Present SMR focus areas
Area of growth

SMR STRATEGY AND NEW
DIVISION

5 STRATEGIC SHIFTS FOR SMR
FOCUS ON HIGH GROWTH
UPSTREAM HARD ROCK•••

Target growth in gold and electrification metals
Secure leading market share in large greenfield and brownfield projects
Persue acquisitions to increase upstream mining coverage

SHAPE THE SUSTAINABLE
UNDERGROUND MINE OF
THE FUTURE•

Lead industry development of underground sustainability and productivity solutions
in electrification, automation, digitalization and end-to-end optimization•••

Take leading market share position by 2030 in surface mining and construction
Leading offering for rotary, DTH and top hammer
Drive sales growth through automation, rock tools, industry leading service••••

Invest in dedicated on site service capability
Grow advanced aftermarket offering through connected equipment, aftermarket AI andanalytics, digitalized ground support and rock tools performance management
Build Customer 1st partnerships through performance-based commercial offerings
Acknowledge increased localization need and tailored solutions for customers••••

Safe and sustainable operations is our number one priority
Unlock speed and efficiency with digital solutions
Unlock agility through decentralization and exceptional people
Become Employer of Choice with clear focus on diversity

TAKE LEADING POSITION
IN SURFACE DRILLING

BECOME CUSTOMER 1ST
PERFORMANCE PARTNER

BUILD HIGH PERFORMING,AGILE ORGANIZATIONSHAPE THE SUSTAINABLE
UNDERGROUND MINE OF THE FUTURE• Full range electric offering for underground loading &hauling and underground drilling

ELECTRIFICATION• Autonomous mining operations through autonomousand connected equipment

AUTOMATION• Unlock speed and efficiency with digital solutions
across the value chain• Grow advanced aftermarket offering through connectedequipment, aftermarket AI and analytics
12DATA & ANALYTICSEND-TO-END
OPTIMIZATIONNEW DIGITAL MINING TECHNOLOGIES DIVISION

DeswikAutomationNewtrax• Mine planningand management
software andconsultation• AutoMine®
Mining equipment
automation systems• Collision avoidance• OptiMine®
Production control
and optimization

R&D Services and Tampere Test mine

TRANSACTION OVERVIEW& FINANCIAL IMPACT

TRANSACTION OVERVIEW

TRANSACTIONCONSIDERATIONS• EV/EBITDA: 28-32x

FINANCIALIMPACT• Financial profile: Underlying EBITA margin is slightly accretive to Sandvik Mining andRock Solutions and neutral to Sandvik Group.

• Estimated closing: Expected to close Q1 2022, subject to customary regulatory approvals• EPS impact excluding PPA: Accretive to Sandvik Group• Impact on the Group balance sheet: The gearing will remain well below the target of<0.5 after the closure of this transaction. The deal will have an impact on the debt KPI:s as
it is a 100% cash deal.

15Q&A
16