Sandvik: Alleima hosts its first Capital Markets Day

Alleima advances industries through materials technology. Alleima offers niched and premium products to a wide set of industries and has claimed strong market positions through its leading metallurgy expertise, global reach, and fully integrated value chain.

The strategy is based on driving profitable growth, materials innovation, operational and commercial excellence, and industry-leading sustainability. Through its customer offering and materials expertise, the company is well positioned to benefit from the global transition toward renewable energy. Alleima has also built a solid financial foundation and proven its financial resilience in recent years. Focus going forward is growing the business based on major global trends, such as a large demand for energy and energy production, a strong shift to fossil-free energy and energy-efficiency, as well as a growing and an aging population driving the development of new healthcare technology.

Financial targets (as previously announced)

[][][]
Organic Deliver profitable organic revenue growth in line with or above
growth growth in targeted end markets over a business cycle
Earnings Adjusted EBIT margin[[1]] to average above 9% over a business cycle
Capital Net Debt[[2]] in relation to Equity below 0.3x
structure
Dividend Dividend on average 50% of profit for the period (adjusted for
policy metal price effects[[3]]) over a business cycle. Dividends to
reflect the financial position, cash flow and outlook

"Alleima is a global leader in materials technology, a strong customer partner and a driver of sustainability. We are the result of nearly 160 years of collective minds working together. At our first Capital Markets Day, we are delighted to present the exciting journey we have ahead of us, as a standalone company. We plan to further strengthen our market position by offering our premium products, using our fully integrated value chain, our prominent metallurgy expertise, and global footprint. We will grow our business leveraging major global trends, the strong demand for energy and energy-efficiency, the shift to fossil-free and renewable energy, and the need for new medical technology", says Göran Björkman, President and CEO of Alleima.
 

The Capital Markets Day will be webcasted live starting at 10.30 am CEST on cmd.alleima.com (http://www.cmd.alleima.com), and a recording of the webcast will be published after the event.

Alleima Capital Markets Day agenda (approximate timings, all in CEST)

10:30 - Welcome and safety

10:40 - Introduction to Alleima: Göran Björkman, President and CEO

11:20 - Financial performance and targets: Olof Bengtsson, CFO

11:50 - Q&A

12:00 - Lunch break

12:45 - Division Tube: Michael Andersson, President Tube

13:15 - Division Kanthal: Anders Björklund, President Kanthal

13:40 - Division Strip: Claes Åkerblom, President Strip

14:00 - Capturing the energy transition opportunity: several members of the management team

14:25 - Q&A

14:45 - Concluding remarks: Göran Björkman, President and CEO

15:00 - End of webcast

15:00 - Guided tour of the steel mill and Surface Technology facilities (for on-site participants only)

Dial in details for the conference call:

Sweden: +46 8 505 583 65 

UK: +44 3 333 009 035 

United States: +1 646 722 49 57

The first day of trading on the Nasdaq Stockholm stock exchange is planned for August 31, 2022. For detailed information on the company, including the process to distribute the Alleima shares to Sandvik shareholders, please see the prospectus that was published August 4, 2022, on www.alleima.com.

Stockholm, August 23, 2022

Sandvik AB

For further information, contact Emelie Alm, Head of Investor Relations, Alleima, phone: +46 (0) 79 060 8717, or Yvonne Edenholm, Press and Media Relations Manager, Alleima, phone +46 (0) 72145 2342, or Louise Tjeder, VP Investor relations, Sandvik, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, Sandvik, phone: +46 (0) 70721 1008

[1] Adjusted EBIT (operating profit excluding items affecting comparability and metal price effects) in relation to revenues.

[2] Interest-bearing current and non-current debts, including net pension and lease liability, less cash and cash equivalents.

[3] Metal price effect on the operating profit during a particular period from changes in alloy prices arising from the timing difference between the purchase (as included in cost of goods sold) and the sale of an alloy (as included in the revenue) when alloy surcharges are applied.