"In line with our strategy, we continue to focus Sandvik's business portfolio to core areas. While Sandvik keeps the mining related part of Drilling and Completions, the oil and gas related operations will now receive full attention from its new owners to support profitable growth," says Björn Rosengren, President and CEO of Sandvik.

In the oil and gas industry, Sandvik Drilling and Completions is a global supplier of drilling solutions focusing on drill bits and downhole products for well construction and well completion.

The contribution to Sandvik's earnings per share from the envisaged minority ownership, reported in associated companies, would have been limited based on the 12 month period ending September 2019.

The purchase price for the 70% share of Sandvik Drilling and Completions related to the oil- and gas industry now divested by Sandvik is 900 million SEK (USDM 90), on a cash and debt free basis, implying an enterprise value of 1,250 million SEK (USDM 130) for the total business. Upon closing, the divestment will generate a positive cash flow impact of an estimated 700 million SEK (USDM 70), net of expected transaction costs. Sandvik Drilling and Completions will remain consolidated in the financial statements of Sandvik Mining and Rock Technology until closing of the transaction, which is expected during the first quarter of 2020, and is subject to the approval of relevant authorities. The transaction triggers a write-down of goodwill and other intangible assets in the estimated amount of 3,900 million SEK (USDM 400), to be reported in Sandvik's financial statements in the fourth quarter.

Sandvik Mining and Rock Technology's actuals and proforma numbers based on the last twelve month period ending September 2019.

                              SMRT after deal       SMRT before deal
                            
Order intake, SEK 44 682 46 677
Revenues, SEK 43 834 45 829
Adjusted operating profit, 8 540 8 478
SEK
Adjusted operating margin, % 19.5 18.5

Stockholm, 28 October 2019

Sandvik AB

For further information, contact Ann-Sofie Nordh, Vice President Investor Relations, phone: +46 8 456 14 94 or Martin Blomgren, Press and Media Relations Manager, phone: +46 70 577 0549.