SANDVIK TO ACQUIRECAM SOFTWARE COMPANY CAMBRIO

1SAFETY FIRSTSandvik‘s objective is zero harm to ourpeople, the environment we work in,
our customers and our suppliers.
PROTECTIVE
EQUIPMENTFIRST AIDKITALARM

EMERGENCYNUMBEREMERGENCY
EXIT

ASSEMBLYPOINT

PSYCHOLOGICALSAFETY

2A BUSINESS GEARED FOR GROWTH
HIGH GROWTH RATES EXPECTED IN SANDVIK MANUFACTURING SOLUTIONSFORECASTED MARKET GROWTH 2019-2025, CAGR

~3%

2.5-3%~2%>10%≥5%Through an economiccycle organic and M&ASANDVIK MINING &ROCK SOLUTIONSSANDVIK ROCKPROCESSING SOLUTIONSSANDVIK MANUFACTURING & MACHINING
SOLUTIONSSANDVIK MACHINING
SOLUTIONS

3SANDVIK MANUFACTURING
SOLUTIONSDIVISIONSSMF IN BRIEF

SEGMENTS

BUSINESS AREA SEGMENT

AERO/SPACE/
DEFENSEAUTOMOTIVE

30%
Geographic location
Headquarters
President

Worldwide
Stockholm, Sweden

Stefan Widing (acting)

DESIGN AND
PLANNING
AUTOMATION

ADDITIVE
MANUFACTURING

METROLOGY

BRANDS & TRADEMARKS:

BRANDS & TRADEMARKS:

BRANDS & TRADEMARKS:

OSPREY®

Revenues​ < 1 BSEK

24%

GENERALENGINEERINGMEDICAL

7%37%
Employees
Gender balance

Estimated market size

~600
Men ~80%
Women ~20%~120 BSEK*Other, incl Energy: 2%

PRODUCT OFFERINGS
3D METROLOGYSOFTWARESOLUTIONSSOFTWARE SOLUTIONS FOR TOOLDATA MANAGEMENTONSITE PRECISION
MEASUREMENTSERVICES

ROBOTIZED SOLUTIONSFOR AUTOMATEDINSPECTION AND
INLINE METROLOGYMETALPOWDER

ADDITIVE
MANUFACTURINGSERVICESGEOGRAPHYNORTH AMERICA

27%EUROPE

55%

ASIA

418%

EXPANDING OUR OFFER ABOVE AND BEYONDSEPARATION OF MANUFACTURING SOLUTIONS FROM MACHINING
SOLUTIONS RELEASES POTENTIAL IN BOTH BUSINESSES––––Enhanced growth opportunities as separate businesses
Enhanced focus and speed in execution
Fit-for-purpose governance models and skills-sets
Execute together with strong independent brands

ADDITIVECOMPONENTDESIGNPRODUCTION
PREPARATIONMACHINING

VERIFICATIONMACHINING SOLUTIONSPOTENTIAL EXPANSION

5MANUFACTURING SOLUTIONSPOTENTIAL
EXPANSION

SANDVIK MANUFACTURING SOLUTIONS– OUR THREE DIVISIONSGROWTHDIVISION

x5

ADDITIVE
MANUFACTURINGDIVISIONMETROLOGY

2019-2025

Addressablemarket

Serviceablemarket

CAGRServiceablemarket

Design &Planning

26B

26B

7%

Additive
Manufacturing

46B

11B *120%

100B

6B *28%SEKDIVISIONDESIGN & PLANNING
AUTOMATION
6Industrial
Metrology*1 Additive printers excluded*2 Only software is included

DESIGN & PLANNING AUTOMATION DIVISIONMISSION AND STRATEGYMISSION

STRATEGY• Automate the manufacturing value chain for small and midsized manufacturing companies – and deliver competitive
point solutions for large OEMs

• The DPA strategy is to build an offering around Computer Aided
Manufacturing (CAM), Design for Manufacturability and Productionlogistics – for manufacturing processes such as machining, additive
manufacturing, metal forming, injection and robotic welding• Deliver products that are open and agnostic, thus simplifying
integration with installed base
• Generate recurring revenues through strong position in
Computer Aided Manufacturing (CAM), Design for
Manufacturability and Production logistics
THE MANUFACTURING
VALUE CHAIN:• The CAM market has been identified as the most important
market to enter due to attractive growth rates – and its proximity
to Sandvik Manufacturing and Machining Solutions’ core business• CAM is a vital component to create an offer of automated solutions
from component design to machining

MACHININGCOMPONENTDESIGN PRODUCTION
PREPARATIONCOMPONENTPRODUCTPRODUCT
PREPARATION

7DESIGN
VERIFICATIONCOMPONENTDESIGNPREPARATIONMACHINING
MACHINING

VERIFICATIONVERIFICATION

WHY CAM?
1

Complements premium
tooling business• Tool selection and productivity
improvements are made here
• The CAM market is consolidating
quickly• Cross-selling tools through CAM
position2

CAM software
market opportunity• Growing into attractive software
segment with higher share ofrecurring revenues• CAM: Tooling market 1:8 ratio,
very good leverage on a strong
software position• Gain a digital reach to the SME
market through CAM• Software logic to use size and scaleof installed base for SaaS transition
and tech scalability

83

Improve customers’ productivity
through digital manufacturing• CAM is a center piece in data
capture and data use position• Use and offer best data-base, toachieve productivity and quality
gains for the customers, and for
Sandvik• Automated processes for customers
will improve customer intimacy andthe position for productivity sales(pay per part model)

CAMBRIOCAMBRIO IN BRIEFOVERVIEWCOMPANY PROFILE 2020

• Cambrio is a leading company with an end-to-end
portfolio in CAD/CAM software for manufacturingindustries

Geographic location:

Worldwide

Headquarters:Ohio, USA

President:

Robert Payne• The product portfolio includes:

Revenues:​ ~68M USD

Employees:~375• Aerospace

America 48%
EMEA 38%APAC 14%• Electronics•GibbsCAM for production milling, turningand mill turn operations•Cimatron for mold and die•

SigmaNEST for sheet metal fabrication

MAIN CUSTOMER
INDUSTRIESSales by region:

USMXUKESUSDEITFR• Automotive• Transportation• Energy• Medical• Etc…

KRISINCNTHJPROBERT PAYNE
PRESIDENTCAMBRIOBRAU

10Corporate Office – Cincinnati, Ohio

CAMBRIO
VALUE

1 Comprehensive fully integrated solution suites

5

Largest independent solution provider of agnostic solutions
capable of interfacing to all major machine types and brands

6

Extensive partnerships with all major stakeholders in themanufacturing ecosystem

7

Opportunities for further organic and inorganic expansion

2 Large and growing addressable market
3 Loyal, blue-chip customer base
4 Compelling financial model – recurring revenues and very
good retention

11CAMBRIOA PERFECT STRATEGIC FIT

01020304

05

Access to highgrowth CAM market
through single acquisition

Global reach within
the market

Complements
current know-how inthe machining process

Healthy and profitablecustomer baseUtilize CAM position
to improve offerings

CAMBRIO IS AN ADVANCED AND WELL-POSITIONED PLAYER IN THE STRATEGICALLY IMPORTANTPRODUCTION PREPARATION STEP WITHIN THE MANUFACTURING VALUE CHAIN

12TRANSACTION OVERVIEWAND FINANCIAL IMPACTTRANSACTION OVERVIEWCAMBRIO
TRANSACTIONCONSIDERATIONS• Enterprise value: Not disclosed• Sellers: Battery Ventures• Estimated closing: Expected to close during the second half of 2021, subject to customary
regulatory approvals

FINANCIALIMPACT• Financial profile: Margin slightly dilutive to Sandvik Manufacturing and Machining Solutions• EPS impact: Neutral to EPS• Impact on the Group balance sheet: Group gearing by March 31 was -0.02 and net
debt/EBITDA was not measurable. The deal will have an impact on the net debt KPI:s as it is a
100% cash deal, but they remain well under control after the closure of this transaction.

14SUMMARYA STRATEGIC ACQUISITION IN CAM
PLAYING A VITAL ROLE IN THE DIGITAL MANUFACTURING PROCESSTHE MANUFACTURING VALUE CHAIN:

Strongstrategic fit

Marketshare inhigh growth
CAM market
COMPONENTDESIGN PRODUCTION
PREPARATION MACHINING
MACHININGCOMPONENTPRODUCTDESIGN

Another step
towards
industry 4.0

16

VERIFICATIONVERIFICATIONPREPARATION

CAM is a vital component to create an offer of automatedsolutions from component design to machining

QUESTIONS & ANSWERS