Sandvik Annual Report

2002

COVERThe cover illustration shows three representativesof the global engineering group Sandvik,from bottom left:

Pulkit Datta, 24, B.E. Mechanical Engineering,Sandvik Tooling, Pune, India. Productivity Improve-ment Engineer, Sandvik Coromant, Sandvik Asia,serving Indian customers in the automotive andengineering industries. Employed since 2000.

Dan Allan, 39, B.A. Commerce, Sandvik Mining and Construction, Burlington, Ontario, Canada.Division Manager, Sandvik Tamrock global parts and service operations. Employed since 1988.

Blanca Garriga, 30, M.Sc. Materials Engineering,Sandvik Materials Technology, Barcelona, Spain.Quality Assurance Manager, Wire Product Area,Sandvik in Spain. Employed since 1996.

SandvikAnnual Report 2002

Sandvik Aktiebolag; (publ) Corporate Registration Number 556000-3468

Highlights of 2002 . . . . . . . . . . . . . . . . . . . 2

Letter from the President and CEO . . . . . . . 4

The Sandvik share . . . . . . . . . . . . . . . . . . . . 6

Sandvik shows the way . . . . . . . . . . . . . . . . 8

Sandvik targets objectives . . . . . . . . . . . . . 10

Sandvik grows profitably. . . . . . . . . . . . . . 12

Sandvik strengthens its corporate culture . . 14

Sandvik creates customer benefits . . . . . . . 16

Business Areas . . . . . . . . . . . . . . . . . . . . . . 18

Sandvik Tooling . . . . . . . . . . . . . . . . . . . . 20

Sandvik Mining and Construction. . . . . . . 24

Sandvik Materials Technology. . . . . . . . . . 28

Report of the Directors . . . . . . . . . . . . . . . 32

Financial risk management . . . . . . . . . . . . 39

Consolidated income statement . . . . . . . . . 41

Consolidated balance sheet . . . . . . . . . . . . 42

Consolidated cash-flow statement . . . . . . . 44

Parent company financial statements . . . . . 45

Accounting principles . . . . . . . . . . . . . . . . 49

Notes to the accounts . . . . . . . . . . . . . . . . 51

Proposed appropriation of profits . . . . . . . 63

Auditors’ Report . . . . . . . . . . . . . . . . . . . . 63

Directors and Auditors . . . . . . . . . . . . . . . 64

Group Executive Management, Group Staffs . . . . . . . . . . . . . . . . . . . . . . . 66

Annual General Meeting,Payment of dividend . . . . . . . . . . . . . . . . . 67

Key figures. . . . . . . . . . . . . . . . . . . . . . . . . 68

CONTENTS