Sandvik AB To Acquire Mining Part of Schenck Process Group 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 : Just basically an add on to the questions that have already been asked. So can you give us an idea of the current exposure, gold, copper, iron, coal, and I think limestone is also a business for Schenck with the current exporters. The second question, yes, again, on valuation. The way I understand it is that you include the top line growth, you have operational gearing -- positive gearing in that business for 5 years and you have synergies with the group overall. If you put this all together and you calculate the EBITDA, you then say, okay, we pay 10x EV/EBITDA 5 years out which would then imply a very high current multiple. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2022 / 1:00PM, SAND.ST - Sandvik AB To Acquire Mining Part of Schenck Process Group M&A Call And when I look at your competitors like Metso or FLSmidth, the whole trade below 10x. So I would like to understand why we're so optimistic on those growth outlook? Is it really just the synergies? Or is there something behind maybe IT, software, other things? Stefan Widing - Sandvik AB (publ) - President, CEO, Director and President of Sandvik Manufacturing & Machining Solutions I can take the valuation question. But Anders, do you have the current ore breakdown to provide?

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : So today's EBITDA -- so 2022 EBITDA plus the synergies you expect in 5 years' time for earnings, including -- but then including the growth synergies that you mentioned earlier, right? You talked about growth and revenues synergies. Stefan Widing - Sandvik AB (publ) - President, CEO, Director and President of Sandvik Manufacturing & Machining Solutions Yes, yes. Yes, correct. Yes.

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : Okay. Okay. Okay. Stefan Widing - Sandvik AB (publ) - President, CEO, Director and President of Sandvik Manufacturing & Machining Solutions I would tell you will still arrive at the number, of course, about 10x EBITDA, if that's your reference point. But we believe -- again, as I mentioned, we believe when we look at this case, we see it as very value creative based on the returns we can see. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2022 / 1:00PM, SAND.ST - Sandvik AB To Acquire Mining Part of Schenck Process Group M&A Call And it's coming from the good -- very good margin profile combined with good underlying growth and strong synergies.