SANDVIK AB ANNUAL

Risk Management

Risk management Strategic objective Key risk What this means Examples of what do we do (mitigation) Shift to Geopolitical development — Regionalization/nationalization — Tariff mitigation plans from all business areas growth — Increasing trade tariffs — Property loss prevention and environmental — Armed/hybrid conflicts resilience review — Extreme weather events/climate change Geographical agility — Lower growth projections in some key — Footprint optimization markets — Regional growth strategy and segments — Heavy European footprint Acquisition value creation — Business case delivery — Capital allocation Business transformation — Electrification of the mine — Business area M&A and partnership strategies — Closed-loop manufacturing — Six moves/digital strategy — Execution of digital shift and data driven productivity Digital shift Digital disruption — Cybersecurity — Cybersecurity improvement program — Information security — Implementation of NIS2 EU directive — Disruption by digital players — Data management projects — Embracing AI — Establishing Intelligent Manufacturing — Execution of Digital Mining and digital offering — AI adoption plans for all parts of the business Sustainability Compliance — Third-party risks — Intermediary management program shift — Stricter financing requirements — Update digital tools for third parties — Trade compliance and sanctions — Compliance digital improvement project Agile through Managing the EBITA — Controlled ramp-up — Restructuring projects cycle corridor and Net Working — Inefficient use of capital — Contingency plans, four phases, performance Capital — Contingency fatigue management — Pricing initiatives and follow-up, incl. mitigating tariffs and weaker USD — Inventory management projects in all business areas and divisions — Actions on employee engagement Customer’s Changing customer — Customer centricity — Cybersecurity improvement program/NIS2 1st choice needs/requirements — Adapting to market transformation implementation — Customer requirements on cyber- and information security Change management — Operating structure — Leadership education for change — Transformative leadership capabilities Competition from — Technology and innovation race — Keep improving productivity and safety to emerging markets — Market share threat demonstrate the value proposition — Cost competitiveness — Clear M&A strategies and pipeli