Sandvik May 2006 CEO Lars Pettersson, Munich page 1 New Solutions For A New Environment Lars...

Sandvik May 2006 CEO Lars Pettersson, Munich page 1

New Solutions For A New Environment

Lars Pettersson

President and CEO

Sandvik May 2006 CEO Lars Pettersson, Munich page 2

eat

PAST

Sandvik May 2006 CEO Lars Pettersson, Munich page 3

PRESENT

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FUTURE

Sandvik May 2006 CEO Lars Pettersson, Munich page 5

Industrial production12-month rate of change

-10%

-5%

0%

5%

10%

15%

20%

CANM

EXUSA

JPN

KOR

AUTBEL

DNKFIN

FRADEU

GRC

HUNIR

LIT

ALUX

NLDNO

RPO

LPRT

SVKESP

SWE

TURG

BR

Jan 06 OECD-Total

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Youth unemployment rate

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Total factor productivity growth

-1,5%

-1,0%

-0,5%

0,0%

0,5%

1,0%

1,5%

2,0%

US UK Germany France EU-15 Italy

1995-2000 2000-2004

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0

2

4

6

8

NorthAmerica

Japan WesternEurope

EasternEurope

ASEAN China India

%

GDP Growth per Capitaaverage annual percentage changes 1970-2002

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Growth in Industrial productionProjected production growth 2005, %

Source: Economist Intelligence Unit

0%

2%

4%

6%

8%

10%

12%

14%

16%

China India EasternEurope

Brazil

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Importance to Sandvik

Sandvik sales 2005

Europe 35 44

NAFTA 34 20

Asia/Australia 24 23

Africa/South America 8 13

World GDP 2003 1997

53

24

15

8

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New solutions for a new environment

We are coming from:

local economies

trade barriers

limited communications

local labour markets

but facing:

global economies

free trade

unlimited communication

global markets

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New solutions for a new environment

What we have:

systems and relations which inhibits change

subsidies rather than incitament

collective rather than individual solutions

obstacles for immigrants

too low spending on research, development and education

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New solutions for a new environment

What we need to achieve:

promote change in a proactive way, act rather than react!

provide a reasonable safety net to encourage change and

development

clarify the responsibility of the individual to make sure he/she

is employable

encourage education, research and entrepreneurship

reduce unemployment of immigrants