! Chairman of the Board: Percy Barnevik! President and CEO: Clas Åke Hedström

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(1) KI-99009 ENG! Sales about SEK 40 000 M! 34 000 employees! 300 companies in 130 countries! Products with high R&D and added value! Global leader in selected niches! Chairman of the Board: Percy Barnevik! President and CEO: Clas Åke Hedström

(2) KI-99010 SANDVIK 1862 1999

(3) KI-99011-B ENG Sandvik Tooling Sandvik Coromant Sandvik CTT Sandvik Hard Materials SANDVIK AB Board of Directors Group Executive Management Group Staffs Business Areas Sandvik Mining and Construction Sandvik Tamrock VA- Eimco Driltech Mission Roxon Sandvik Specialty Steels Kanthal Sandvik Process Systems Separate Business Units Regional Companies Service Companies Other Group Companies Associated Companies Sandvik International Sandvik South East Asia Sandvik Latin America Sandvik Information Systems Sandvik Service

Sandvik Specialty Steels Invoicing, SEK M 13 000 Number of employees 9 500 : Tube, strip, wire and bar in stainless steels and special alloys Kanthal: Electric resistance heating materials and heating elements for industrial furnaces and household appliances Sandvik Process Systems: Develops, manufactures and markets steel belts and process plants based on steel-belt technology

product range Own produced products:! Billets! Bar and hollow bar! Rock drill steel! Seamless tubes! Electro-polished products! Strip steel! Wire and profiles! Welding products Complementary products:! Welded tubes! Fittings and flanges! Sheet and plate The products are made of stainless and high-alloy steels and of special alloys based on nickel, titanium and zirconium.

Main strategy Being a globally leading supplier in selected market niches Customer strategy element:! Delivering values to customers who appreciate long-term relationships, quality and innovative work Internal strategy elements:! Distributing own and complementary products quickly and cost-efficiently through our sales network! Producing high value added products based on own metallurgy! Developing products, new grades or new product forms, in close co-operation with key customers

around the world Manufacturing unit Sales company Agent SG7003/97

in Sandviken

Electric Arc Furnace! Melting of scrap and alloys! Heat weight: 75 tonnes! Tap to tap time: 2 h! Tapping temperature: abt. 1650 C

AOD Converter! Argon Oxygen Decarburization! Steel refining and alloy adjustments! Heat weight: 75 tonnes! Tap to tap time: 1-2 h

Ladle Furnace! Temperature control and homogenisation! Deoxidation! Final alloy adjustments! Heat weight: 75 tonnes

Continuous Casting! 3 strands, sizes: 365x265, 265x265 mm! Casting speed: max 1.20 m/min! Electromagnetic strand stirring, SEMS! Electromagnetic final stirring, FEMS

Products with high value added 0 25 50 75 100 Mini-mill Carbon Steel Integrated Steel Mill Construction Steel Producer Employees per Index 100 tonne Stainless industry typical 25 Sales price per Index 100 tonne Stainless industry typical 40 Tool Steel Producer Stainless Flat Producer Sandvik Steel Raw materials Value added

Quality policy! THE OBJECTIVE To be the customer s preferred supplier by meeting or exceeding external and internal customer s demands and expectations concerning all products and related services! THE MEANS A commitment of all employees to achieve continuous improvement and to understand the demands and expectations.

Quality Assurance! has a quality system approved, by accredited third party, to ISO9001/ EN 29001, valid for all products.! The system is also approved to other internationally recognised standards, for particularly demanding applications.! Copies of certificates are provided on request.! Sandvik is a registered trade mark owned by Sandvik AB

R&D resources! Scandinavia s largest R&D facilities for steel product and process development! Some 250 employees in Sandviken dedicated to R&D " 120 in product research " 85 with MSc or higher

Basic R&D conditions! Long product life cycle times " 5-50 years! Conservative end-users due to high risks " Stand still costs " Environmental aspects " High capital investments! Long development times " Extensive field testing required " Long laboratory testing times

Welding products For welding of stainless steels and nickel alloys! Wire and strip electrodes! Welding wire/rods and covered electrodes! Flux cored electrodes! Core wire for covered electrodes! Fluxes and pickling paste

Wire and profiles! Stainless steel wire 0.10-13.0 mm! Flat rolled precision wire " width 0.5-7.0 mm " thickness 0.05-4.0 mm! Straightened wire in lengths up to 4 m! Profiles " width 0.5-21.5 mm " thickness 0.5-8.0 mm! Applications: spring wire, precision wire, free cutting steels, cold heading wire, spoke wire, welding wire

as your partner! Close relations with key customers around the world! Goodwill and confidence in the Sandvik name and products upheld! Products easily and quickly available world-wide! Commercial and technical service used to gain preferred supplier status