Sandvik AB Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew James Wilson - JPMorgan Chase & Co, Research Division - Analyst : It's around an aftermarket on, I guess, SMR but SRP as well obviously down in the quarter and kind of explain the reasons why. But you also alluded to sort of a return to, I think, was around sort of normal growth rate? And I think we've wrestled a little bit with this over sort of the last couple of years where the growth rates have been very, very strong. And if we look at kind of strategically what you've been doing in the shape of the market, what sort of level do you think sort of normal is? I mean, is it the kind of mid- to high single digits. And if you can give us a little bit of idea of kind of pricing assumptions within that? Because I imagine that's been a help over the last couple of years. And my second question, it's kind of related. Just to clarify, I think you made a comment around metals prices making a difference in terms of the growth rate in the Q3. Can you just -- maybe everybody else knows, but just to clarify exactly what the impact of that was because it's something I remember mentioning previously, specifically on SMR.

Question: Andrew James Wilson - JPMorgan Chase & Co, Research Division - Analyst : Just to clarify, just on the first question around the impact of the metals prices. Is that going to be a one quarter impact? Or is that going to cycle through the next few quarters, assuming that steel price remains where it is kind of onetime reset?

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : I have a follow-up on the momentum in Mining CapEx. I get the impression that the electric Mining equipment business has lost some momentum. Maybe you can give some more color on that one? And then secondly, Schenck seems to have developed much stronger than anyone anticipated. Could you give us an indication of the current margin contribution and pricing momentum for Schenck? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 23, 2023 / 11:00AM, SAND.ST - Q3 2023 Sandvik AB Earnings Call And finally, a question on net working capital. I'm a bit surprised that it's still higher than 30% of revenues given that the new equipment orders are coming down so much. Are there any specific measures that you currently take to reduce net working capital? And what is your target in the next 12 months?

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : Yes, that would be my follow-up. So that's basically machinery that's Finish that sits on the ports in Finland or in Australia? Or how do we have to visualize that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 23, 2023 / 11:00AM, SAND.ST - Q3 2023 Sandvik AB Earnings Call