Sandvik AB To Acquire Leading Mine Planning Software Company Deswik and Launch New Digital Mining Technologies Division M&A Call Transcript

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

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : I have a couple of questions. First of all, the Deswik software, does it already incorporate equipment, electric equipment, battery-driven equipment fleets in software? Or will this be the next step that Sandvik wants to push? Secondly, I wonder if Sandvik found it a little bit difficult or find it difficult to sell battery-driven mining equipment currently because the mines simply use software that is not, let's say, aligned with the battery swapping and all the logistics and more than that, and whether Sandvik was therefore a little bit desperate to get a software player that will drive and will simplify this logistics problem. And thirdly, the -- in the charts, in the pictures you show with the Deswik software, it's a lot of overground mines that are shown there. I wonder what the ratio is of clients of Deswik that's mainly overground and whether Sandvik sees this a little bit as a door opener for overground mining.

Question: Anders Roslund - Pareto Securities AS, Research Division - Analyst : Yes. I'm interested in the synergies between the 3 subdivisions, [Deswik], automation and Newtrax. And specifically AutoMine and Deswik, how do you see upon that? Is it sales synergies or is it integration? Or... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 02, 2021 / 12:30PM, SAND.ST - Sandvik AB To Acquire Leading Mine Planning Software Company Deswik and Launch New Digital Mining Technologies Division M&A Call

Question: Anders Roslund - Pareto Securities AS, Research Division - Analyst : Okay. Interesting. And I guess Newtrax is more on the machine part or...

Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst : I have just a couple of quick questions, I think. I'm interested a little bit around the sales process, in terms of whether this was an auction, kind of how, I guess, you came to know about the availability and, I guess, why -- or kind of why ended up with Sandvik, I guess, in short. But maybe if we start with that one. Stefan Widing - Sandvik AB (publ) - President, CEO, Director and President of Sandvik Manufacturing & Machining Solutions Yes, I can start. I mean this was an auction process. There are 3 founders that decided it was time to sell. The CEO and management is not part of that group, so they are sort of independent from that. And then it's been an auction process. We have known this company for quite some time. It's been something we have been looking into. So when the auction process started, we were quite prepared, I would say, or more than prepared. And -- but it's been a competitive process up until very recently. So that's a little bit how it's been. Henrik, do you want to? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 02, 2021 / 12:30PM, SAND.ST - Sandvik AB To Acquire Leading Mine Planning Software Company Deswik and Launch New Digital Mining Technologies Division M&A Call

Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst : And the second one was just around -- just around in terms of investments and kind of obviously thinking about the new SMR division, and there's obviously a lot of time and expense going into this. And going forward, sort of how comfortable are you about the sort of the current level of investment that's going into these businesses and how much that might need to increase for you to deliver on some of the targets that you're talking about?