The Board of Directors of Sandvik AB proposes a long-term incentive program 2012

The Board of Directors of Sandvik AB proposes a long-term incentive program 2012

The Board of Directors of Sandvik AB proposes that the Annual General Meeting
resolve on a long-term incentive program for 2012 (LTI 2012) encompassing
approximately 350 senior executives and key individuals within the Group, on
substantially the same terms and conditions as the 2011 long-term incentive
program.

Participants are offered allotment of employee stock options that entitle the
holder to acquire Sandvik shares after three years at a set exercise price, on
condition that certain performance targets are met. For some executives in more
senior positions, a personal investment in Sandvik shares will also be required
to gain entitlement to allotment of employee stock options and matching rights,
which entitle the holder to acquire Sandvik shares after three years at a set
exercise price.

LTI 2012 comprises a maximum of 12,000,000 Sandvik shares, corresponding to
about 1% of the total number of shares on 31 December 2011, and will be secured
in the form of share swaps with a third party, thus resulting in no dilution
effect. Assuming a share price of 100 SEK, expected volatility of 40% and a
five-year term, the cost of LTI 2012 is estimated to approximately 258 MSEK.

Sandviken, 1 February 2012
Sandvik Aktiebolag (publ)

 

For further information, contact Anders Wallin, Vice President Group
Communications, Sandvik AB, tel +46 26 26 09 20.