Sandvik signs agreement to divest its Mining Systems operations

Sandvik has signed an agreement to divest its Mining Systems operations,
reported in the Sandvik income statement as discontinued operations, to the
private equity company CoBe Capital. Sandvik will maintain ownership of ongoing
projects which are close to finalization.

The closing of the transaction is expected during the fourth quarter of 2016,
subject to the satisfaction of certain conditions precedent. The parties have
agreed not to disclose the purchase price.

The transaction entails a capital loss of -800 million SEK impacting the result
of Sandvik’s discontinued operations for the third quarter of 2016. The capital
loss includes a negative cash flow impact of -600 million SEK, primarily in
conjunction with the closing of the deal.

Mining Systems is a supplier of design and engineering of material handling
systems for the mining industry. In 2015 the Mining Systems operations, with
1,100 employees, had annual sales of 5 billion SEK representing 6% of Sandvik
Group revenues, and an operating loss was reported at a low single digit margin

“Divesting the Mining Systems is an important step in consolidating Sandvik to
its core operations, which for Sandvik Mining and Rock Technology is high
technology mining equipment and aftermarket offerings”, says Björn Rosengren,
President and CEO of Sandvik.

The intention to divest Mining Systems was first communicated through a press
release 1 October 2015.

Stockholm, 18 July 2016

Sandvik AB

For further information contact: Ann-Sofie Nordh, Head of Investor Relations,
Sandvik AB, tel +46 8 456 1494 or Pär Altan, Head of External Communications,
Sandvik AB, tel +46 70 616 2024.

Sandvik Group
Sandvik is a high-tech and global engineering group offering products and
services that enhance customer productivity, profitability and safety. We hold
world-leading positions in selected areas – tools and tooling systems for metal
cutting; equipment and tools, service and technical solutions for the mining and
construction industries; products in advanced stainless steels and special
alloys as well as products for industrial heating. In 2015, the Group had
approximately 45,000 employees and sales of 86 billion SEK in more than 150
countries within continuing operations.