...Sandvik is a market leader in high-value added products, with a large share of aftermarket sales that leads to high profitability. Sandvik's strategy of prioritizing business areas where it typically holds global No. 1 or No. 2 positions enables the group to deliver high profitability, further supported by its focus on products of key importance to customers' productivity. This strategy has also contributed to its structurally improved profitability over the past few years. We forecast an EBITDA margin of 22%-24% over 2018-2019, compared with 20.3% in 2016. Healthy industry conditions support such robust profitability. However, we expect margins will soften from 2020, due to general market cyclicality, but remain strong. Recent years' efforts to increase profitability and flexibility should strengthen Sandvik's resilience to market downturns. We expect that Sandvik will withstand cyclical downturns better than in the past, including more resilient profit margins. This is thanks to the more...
