Sandvik Capital Markets Day 2005/1

Customer ValueEe Sian Lee

Sandvik Coromant China

Kenneth Sundh President Sandvik Coromant

Sandvik Capital Markets Day 2005/3

Wahaha

Availability of world-class tooling solutions

Good understanding of customer business

High product quality

Short delivery times

High degree of technical service

Production problem-solving

Productivity improvements

Summary of value creation at Wahaha

Sandvik Capital Markets Day 2005/4

Wahaha Customer Value File

Total Cost Savings SummaryImplemented savings during this period

Total savings identified this periodUnrealized savings end of this period

Sandvik Coromant purchases this period

Implemented savings this period

Reported period (max one year):

Purchase cost

Savings “Net”purchasecost

100% 15%

85%

2004-01-01 - 2004-12-31

246 699162 269

408 968

1 653 603

15%

RMB

Identified savings this period 25%

Sandvik Capital Markets Day 2005/7

ScaniaSummary of value creation at Scania

Global supplierHigh qualityVery good service levelCooperation - Partnership - RelationshipCost reductions – Not price for the toolTotal cost - ”cost per part”Common project work

Sandvik Capital Markets Day 2005/8

High quality services &

products

Being Partner-oriented

Speaking with one voice globally

Improving customer

productivity

Our success factors“ the fundamentals of our strategy”

Sandvik Capital Markets Day 2005/9

The tool cost representsapprox. 3-4% of the total production cost

Can lower the total production cost by 15-20%

Tooling

Overhead

Operators

Machinery&

equipment

Workpiece material

Focus on productivity and cost savings

Sandvik Capital Markets Day 2005/10

Our customers inspire our leadership in technology development

High investment in R&D

High proportion of products less than 5 years old

Over 2000 active patents

Sandvik Coromant Presentation 2005

Sandvik Capital Markets Day 2005/11

We create customer value in our Productivityand Application Centers around the world

Sandvik Capital Markets Day 2005/12

Certification of all Productivity Centers

To secure a common message

Certified by the Parent Co.

Similar premises and equipment incl. Machine Tools

Same demands on personnel and training

Sandvik Capital Markets Day 2005/13

To develop our own people in creating value for the customer

Sandvik Capital Markets Day 2005/14

To provide competitiveproducts, solutions and services

Sandvik Capital Markets Day 2005/15

…and we alwaysleave behind a proof of what we have delivered

Thank You!