The Sandvik share

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					The Sandvik
    share
SHARE PRICE DEVELOPMENT                                                 S A N DV I K ’ S C A P I TA L I Z AT I O N A N D S H A R E P R I C E
Sandvik’s total market capitalization at year-end     SEK                                                                                     Capitalization, SEK billion
2005 was SEK 88 billion (71), and the share price     400                                                                                                            100
at year-end was SEK 370.00 (268.00). In terms
                                                      350
of value, the Group was the 12th (10th) largest
                                                      300                                                                                                                            75
company on the Stockholm Stock Exchange.
Sandvik’s market capitalization increased 24%         250
during the year, after an increase of 8% during       200                                                                                                                            50
2004. During 2005, the MSCI Europe Machin-
                                                      150
ery Index increased 47% and the Stockholm
Stock Exchange All-Share Index increased 33%.         100                                                                                                                            25




                                                                                                                                                                    Source: EcoWin
    During the most recent 10-year period, the         50
Sandvik share price, including reinvested dividend,
                                                        0                                                                                                                            0
rose an average of 17% annually. The comparable               1990 91      92      93    94    95      96   97    98    99   2000      01    02     03     04    05*
increase for the All-Share Index was 7%.                             Share price        Capitalization
    The Sandvik share ranked 9th (9th) among                 * A redemption program totalling SEK 4 billion was effected during 2005
the most actively traded shares on the Stockholm
Stock Exchange during 2005. In total, 385 million                    S A N DV I K A N D T H E S TO C K H O L M S TO C K E X C H A N G E
(399) shares were traded. The turnover was 158%       SEK                                                                                                                            Number
                                                      400                                                                                                                            80 000
(159).
                                                      350
LISTINGS                                                                                                                                                                             60 000
                                                      300
Sandvik has been listed on the Stockholm Stock
                                                      250
Exchange since 1901. The total number of shares
                                                                                                                                                                                     40 000
at year-end was 237,257,435 and the number of         200

shareholders was 55,966. The Sandvik share can        150
also be traded in the US in the form of ADRs
                                                      100                                                                                                                            20 000
(American Depositary Receipts). The number of
outstanding ADRs was 1,884,530 at year-end 2005.       50                                                                                                           Source: EcoWin


                                                        0                                                                                                                            0
DIVIDEND POLICY                                          2000               2001              2002           2003             2004                2005             2006

The principal financial objective of the Sandvik                      SANDVIK               STOCKHOLM STOCK EXCHANGE ALL-SHARE

Group is to generate attractive capital return and                   NUMBER OF TRADED SANDVIK SHARES (ë000) PER MONTH

value growth for those who invest in the Sandvik
share. The goal is that the dividend and value          SEK            S A N DV I K A N D M S C I E U RO P E M AC H I N E RY I N D E X
growth shall exceed the engineering industry’s          400

average and that shareholders shall receive a
                                                            350
dividend of at least 50% of the earnings per share.
   With the proposed dividend (SEK 13.50 per                300

share), the increase in dividends has averaged 8%           250
annually from and including 1995. The dividend
                                                            200
comprises 55% of earnings per share in 2005. The
                                                            150
average payout ratio during the past 10 years is
68%. Earnings per share was SEK 24.70 in 2005.              100

                                                             50
REDEMPTION OF SHARES
                                                              0
Sandvik’s annual meeting of shareholders on
                                                              2000              2001            2002             2003           2004               2005                   2006
3 May 2005 decided to implement a redemption
                                                                        SANDVIK                 MSCI EUROPE MACHINERY



                                                                                                                                            T H E S A N DV I K S H A R E · 5
                                                 of shares, with rights to the shareholders in                         • The number of shares was reduced by
                                                 Sandvik to redeem shares in the company for a                           26,309,361.
                                                 cash payment of SEK 405 per share. Acceptance                         • Sandvik AB’s statutory reserve increased by
                                                 of the redemption offer exceeded 99% and a                              SEK 256,988,166.
                                                 total of 9,787,361 shares were submitted for                          • Sandvik AB’s distributable equity declined by
                                                 redemption at a value of about SEK 4 billion.                           SEK 4,063,013,205.
                                                     An extra meeting of shareholders on 28 June                       • Earnings per share increased by about 3%
                                                 2005 decided to redeem the aforementioned                               as an effect of the above.
                                                 9,787,361 shares and to cancel 16,522,000 earlier
                                                 repurchased shares. The decision was registered in                    SHAREHOLDERS
                                                 July. After registration and payment in the begin-                    The ten largest shareholders hold about 45% of
                                                 ning of July, the effects were the following:                         the total number of shares. At 2005 year-end,
                                                 • Sandvik AB’s share capital was reduced by                           39% (38) of the shares were held by shareholders
                                                   SEK 157,856,166 and amounts to SEK                                  outside Sweden.
                                                   1,423,544,610.                                                         The ten largest shareholders in Sandvik at
                                                                                                                       year-end 2005 were:
    S H A R E H O L D E R S T RU C T U R E I N S A N DV I K A B 3 1 D E C E M B E R 2 0 0 5                            Ownership group                       Holding (%)
                                                                                                                       AB Industrivärden                            11.0
                                Robur Funds, 2.6%                  SEB Funds, 1.6%                                     JP Morgan Chase Bank*                        10.9
          AMF Pension Insurance, 3.8%                                   Nordea Funds, 1.5%                             State Street Bank and Trust Co, W9*           6.1
   SHB Pension Foundation, 3.8%                                                         Owners outside Sweden, 39.3%   SHB Pension Foundation                        3.8
                                                                                                                       AMF Pension Insurance                         3.8
      AB Industrivärden, 11.0%                                                                                         Robur Funds                                   2.6
                                                                                                                       SHB Funds                                     2.2
                                                                                                                       SEB Funds                                     1.6
                                                                                                                       Nordea Funds                                  1.5
 Swedish private persons, 9.2%
                                                                                                                       Northern Trust Company, W9                    1.2
                                                                                                                       * nominee-registered shares

                                                                                                                       INDEX
                                                   Other Swedish institutions, 27.2%
                                                                                                                       The Sandvik share is included in the following
          AV E R AG E N U M B E R O F S A N DV I K S H A R E S T R A D E D DA I LY                                     indexes among others: Stockholm Stock Exchange
               O N T H E S TO C K H O L M S TO C K E X C H A N G E ( ’000)                                             All-Share, OMX, Afv General Index, Findata
                                                                                                                       Yield Index, MSCI World Machinery, MSCI
                                                                                                                       Europe Machinery, FTSE Eurotop 300, FTSE
                                                                                                                       Eurotop 100, DJ Stoxx, S&P Euro Plus 200,
                                                                                                                       Alfred Berg Nordic, and Enskilda Engineering
                                                                                                                       index.
                                                                     1 241

                                                                              1 380

                                                                                       1 618

                                                                                                 1 576

                                                                                                            1 522
                        462

                                   479

                                          785

                                                   788

                                                           816




                                                                                                                       RESEARCH
                       96       97        98       99      00       01       02       03        04        05
                                                                                                                       The following companies published research
                    E A R N I N G S P E R S H A R E A N D D I V I D E N D PA I D, S E K                                reports on Sandvik during 2005: ABG Sundal
                                                                                                         13.50*        Collier, ABN Amro, Bear Sterns, BHF Bank,
                                                                                               11.00                   Carnegie , Cheuvreux, Citigroup, Commerzbank,
                                                                     10.00 10.50
                                                           9.00 9.50                                                   CSFB, Deutsche Bank, Dresdner Kleinworth
                                                  8.00
                      6.50      7.00     7.00                                                                          Wasserstein, Enskilda Securities, Evli, Fischer
                                                                                                                       Partners, Goldman Sachs, Handelsbanken Mar-
                                                                                                                       kets, JP Morgan, Kaupthing, Lehman Brothers,
                                                                                      11.20
                        11.20

                                 10.15




                                                   14.00

                                                           14.20




                                                                             13.70
                                                                     14.40




                                                                                                19.25

                                                                                                           24.70
                                          8.10




                                                                                                                       Merrill Lynch, Morgan Stanley Equity Research,
                       96       97        98       99      00       01       02       03        04        05           Nordea Securities, Société Générale, Swedbank
                     * Proposed                                                                                        Markets, UBS, and Öhman.

6 · T H E S A N DV I K S H A R E

				
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