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Studsvik — Interim / Quarterly Report 2007
Oct 29, 2007
3208_10-q_2007-10-29_c1fa1dbc-e69d-4292-ad9a-31c1ad5f83ff.pdf
Interim / Quarterly Report
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| January– | January– | ||
|---|---|---|---|
| September 2007 | September 2006 | Full year 2006 | |
| Net sales, SEK million | 944.1 | 890.4 | 1,219.6 |
| Operating profi t, SEK million | 46.8 | 50.1 | 71.3 |
| Profi t after tax, SEK million | 34.2 | 21.5 | 34.8 |
| Profi t per share after tax, SEK | 4.18 | 2.62 | 4.24 |
| Equity per share, SEK | 68.30 | 69.00 | 67.97 |
| Equity-assets ratio, % | 43.3 | 40.9 | 41.2 |
Interim Report January –September 2007
- The Group reported good organic growth, primarily due to a continued positive trend in the United Kingdom. •
- A cooperation agreement was signed with WCS in the USA for treatment and intermediate storage of waste. •
- Studsvik is part of a consortium that is fi nalizing a contract to operate the United Kingdom's low-level radioactive waste repository. •
- The British engineering company Alpha Engineering was acquired. •
- Operating profi t in the third quarter was negatively affected by a stoppage in the Swedish melting facility, lower capacity utilization in logistics in the American waste operations and low margins in materials technology. •
- Prospects for the full year 2007 have been revised. Operating profi t is expected to be somewhat lower than in 2006. •
Net Sales
Net sales for the third quarter amounted to SEK 325.1 million (321.3). For comparable entities, net sales increased by SEK 53.1 million, equivalent to 19 per cent. The increase is mainly attributable to the operations of the Strategic Business Area Decommissioning in the United Kingdom. Net sales for the period of January to September amounted to SEK 944.1 million (890.4). For comparable entities, net sales increased by SEK 110.7 million, equivalent to 14 per cent. The change consists of an increase in the United King dom in Waste Treatment and in Decommissioning. In Germany Service and Maintenance net sales increased, while Decommissioning net sales decreased. The foreign exchange effects on translation of foreign subsidiaries' net sales amounted to SEK –35.2 million .
Sales abroad amounted to 86.7 (73) per cent of net sales.
Profi t
The operating profi t for the third quarter amounted to SEK 8.8 million (23.0). For comparable entities the operating profi t decreased by SEK 7.6 million. The changes are mainly attributable to a stoppage in the Swedish melting facility and lower capacity utilization in the logistics part of the American waste treatment operations. In Operating Effi ciency, materials technology operations continued to show weak profi tability.
The operating profi t for the period January to September amounted to SEK 46.8 million (50.1). For comparable entities and adjusted for capital gains on the sale of Studsvik Stensand and for costs of the discon tinued acquisition process in the United Kingdom, the operating profi t decreased by SEK 9.6 million. Profi t before tax for the period of January to September was SEK 35.9 million (32.9).
Foreign exchange effects in connection with the translation of foreign subsidiaries' operating profi t amounted to SEK –1.0 million.
Strategic Business Areas
Waste Treatment
Net sales for the third quarter amounted to SEK 140.2 million (147.7) and for the period of January to September, to SEK 451.2 million (359.7). Operating profi t for the third quarter amounted to SEK 5.0 million (12.6) and for the period of January to September, to SEK 27.1 million (27.9). Most of the negative deviation in performance for the quarter is attributable to the Swedish operations.
Net sales in the Swedish operations fell in the third quarter compared with the corresponding period in 2006. The level of organic waste treated remained unchanged, while treatment of metallic waste was severely restricted in August and September by a stoppage in the melting facility. The melting facility came into production in September. The order situation for both metallic and organic waste is good. Contracted steam generators from Ringhals and the German Stade facility, a total of fi ve, were delivered in the third quarter. Treatment was started after the reporting period.
Net sales in the Strategic Business Area's American operations in Erwin and Memphis increased in local currency in the third quarter, compared with the same period in 2006. Due to a weaker dollar, net sales in Swedish kronor remained substantially unchanged. During the quarter there was a decrease in capacity utilization in the logistics operations run as part of the American waste operations. Operations in Erwin continued to show a positive trend with a higher production volume than that of the corresponding period last year. Operations in Memphis developed well in terms of sales, but with continued low margins due to strong competition.
In the third quarter Studsvik signed a cooperation agreement with the Texas-based Waste Control Specialist (WCS) for treatment and intermediate storage of class B and class C waste. Through the co operation agreement with WCS, Studsvik can offer the American nuclear power industry a secure and competitive storage alternative. Operations in the United Kingdom continued to show a positive trend and net sales increased compared with the corresponding period in 2006. Studsvik is part of a consortium appointed to fi nalize a contract to operate the United Kingdom's low-level nuclear waste repository and to implement a strategy for lowlevel waste in the United Kingdom. Studsvik holds a 15 per cent participating interest. Negotiations were started in the third quarter and are expected to be concluded soon. The contract value for the consortium is estimated to be GBP 200-500 million, depending on fi nal scope and duration.
THOR Treatment Technologies (TTT) developed as planned. THOR technology is now being successively introduced in Europe, primarily in the United Kingdom and France, where it is expected to have several areas of application.
Decommissioning
Net sales for the third quarter amounted to SEK 74.7 million (47.7) and for the period of January to September, to SEK 192.0 million (140.2). The increase is attributable to the operations in the United Kingdom. Operating profi t for the third quarter amounted to SEK 4.6 million (5.6) and for the period of January to September, to SEK 12.0 million (11.6).
The British operations continued their positive development. Preliminary design has been started as part of the two-year decommissioning contract at the British Sellafi eld site won in the second quarter. On August 1 Studsvik acquired all the shares in the British nuclear tech nology consulting company Alpha Engineering. The acqui sition supplements Studsvik's offer with a number of specialized nuclear technology services in ventilation and structural engineering. Alpha Engineering has grown rapidly since its start seven years ago. The company is now regarded as market leader in its niches, with 30 highly specialized and security-cleared employees.
Net sales increased in the German operations compared with the second quarter, but continue after three quarters at a lower level than last year.
Operating Effi ciency
Net sales for the third quarter amounted to SEK 33.3 million (31.3) and for the period of January to September, to SEK 125.8 million (124.0). Operating profi t for the third quarter amounted to SEK 2.2 million (3.1) and for the period of January to September, to SEK 5.6 million (18.7).
The fuel optimization software product area developed well and reported increased net sales compared with the corresponding period last year.
The earnings trend in the materials technology area continued to be weaker than in the corresponding period last year. Materials technology accounts for the major part of the Strategic Business Area's negative difference in earnings. Compared with last year, earnings have been negatively affected because fewer highly qualifi ed and therefore more highly priced projects were carried out at the same time as capacity utilization was lower. The sales organization has been augmented and sales activities have been intensifi ed. Infl ow of orders and capacity utilization recovered to some extent.
Service and Maintenance
Net sales for the third quarter amounted to SEK 61.9 million (80.6) and for the period of January to September, to SEK 128.8 million (201.5). Operating profi t for the third quarter amounted to SEK 3.3 million (8.8) and for the period of January to September, to SEK 9.8 million (12.3).
After the sale of the Swedish company Studsvik Stensand AB on January 1, the Strategic Business Area's operations are concentrated to Germany and its neighbouring countries. The Strategic Business Area also experienced high capacity utilization in the third quarter, which resulted in higher net sales than in the corresponding period in 2006. High capacity utilization in the Strategic Business Area was mainly an effect of the unplanned shutdown of a number of German reactors for overhaul.
Investments
The Group's investments in the third quarter amounted to SEK 48.8 million (10.2) and for the period of January to September, to SEK 101.9 million (326.6). The third quarter investments include the acqui sition of the British company Alpha Engineering for SEK 34.6 million. Other investments in the third quarter were mainly in the form of reinvestment.
Financial Position and Liquidity
Cash and cash equivalents including current investments amounted to SEK 150.6 million (161.0).
Equity amounted to SEK 559.1 million (567.1).
The equity-assets ratio was 43.3 (40.9) per cent. Interest-bearing liabilities amounted to SEK 321.5 million (371.4). The Group's total borrowing was conducted entirely in foreign currencies and refers to investments and business acquisitions in the USA, Germany and the United Kingdom.
Cash Flow
Cash fl ow from operating activities before working capital changes amounted to SEK 37.0 million (68.0). The change in working capital amounted to SEK –51.1 million (–56.1). Cash fl ow from operating activities after investments amounted to SEK –111.1 million (–314.7). Other changes from investing activities, SEK 45.8 million, refer entirely to the sale of Studsvik Stensand AB on January 1.
Personnel
The average number of employees was 1,147 (1,330).
Parent Company
Parent company operations comprise coordination of the Group, and assets mainly consist of shares in subsidiaries. The Parent Company's net sales during the third quarter amounted to SEK 1.4 million (2.0) and for the period of January to Sep tember, to SEK 4.1 million (6.0). The operating profi t for the third quarter amounted to SEK –6.0 million (–6.9) and for the period of January to September, to SEK –30.2 million (–19.9). Profi t after net fi nancial items for the period of January to Sep tember amounted to SEK 5.7 million (–1.6). The Parent Company's investments amounted to SEK 0.1 million (1.3). Cash and cash equivalents amounted to SEK 89.9 million (86.1) and interestbearing liabilities to SEK 205.2 million (262.0).
Nomination Committee
Before the 2008 Annual General Meeting Studsvik's nomination committee is composed as follows: Björn C Andersson, SHB fonder Jan Barchan, Briban Invest (also a member of the Board of Studsvik AB) Anders Oscarsson, SEB fonder Anders Ullberg, Chairman of the Board of Studsvik
Risks and Uncertainties
Studsvik operates on an international market that is exposed to competition. With operations in seven countries Studsvik is exposed to both business and fi nancial risks and uncertainties. The business uncertainties include the fact that Studsvik handles radioactive material and waste, which means that some of the operations must be licensed and are subject to decisions by govern ment agencies, offi cial regulations and supervision. Studsvik considers that it fulfi ls the requirements imposed by such regulations. The Group's high security culture means that it has a high capacity for adjustment to new rules and terms of reference. The business uncertainties also include the fact that issues concerning nuclear technology may be subject to various expressions of opinion and debate. In such a context it cannot
be ruled out that opinion may emerge on matters that directly or indirectly restrict Studsvik's scope of business action. Studsvik works consistently to maintain a high level of public confi dence. Its approach to the world around is characterized by dialogue and the principle of the greatest possible transparency.
Financial risks and uncertainties mainly include fl uctuations in exchange rates and interest rates, and counterparty risk, i.e. that the Group is exposed to losses due to a counterparty's insolvency.
The responsibility for assessing risk lies with the respective subsidiary, but is examined and followed up by the Parent Company. An overall analysis of the Group's risks and how they are dealt with is given in the 2006 Annual Report, which is also available on the company's website.
Apart from these risks, no further signifi cant risks are estimated to have arisen.
Outlook for 2007
The positive assessment of market prospects made at the beginning of the year is unchanged. Programs for modernisation that demand the type of service that Studsvik offers are in progress in several countries. The extent of decommissioning activities is expected to increase in the British market and in the medium term also in Germany. The North American waste market is characterized by tough competition and narrow margins.
The Group is expected to report good organic growth in 2007 in line with the prospects indicated in the mid-year fi nancial state ments. Due to the weak performance in the third quarter, the operating profi t forecast has been revised, and the full year operating profi t is expected to be somewhat lower than in 2006. In the mid-year fi nancial statements it was estimated that the Group would report an improved operating profi t.
Accounting policies
This interim report has been prepared in accordance with IAS 34, the Swedish Financial Accounting Standards Council's recommendation RR 31 and, for the Parent Company, the Swedish Financial Accounting Standards Council's recommendation RR 32:06. Otherwise, the same accounting policies are applied here as in Studsvik's Annual Report for 2006. The new recommendations that apply as of January 1, 2007 have not affected the Group's fi nancial performance or position.
Nyköping, October 29, 2007
On behalf of the Board of Directors
Magnus Groth President
This report has not been reviewed by the company's auditors.
Time Schedule for Financial Information
Press Release 2007 February 14, 2008 Interim Report January-March 2008 April 22, 2008 Interim Report January-June 2008 July 22, 2008 Interim Report January-September 2008 October 29, 2008
For Further Information Contact
Magnus Groth, President and Chief Executive Offi cer, +46 155 22 10 86 or +46 709 67 70 86 (cell phone), Jerry Ericsson, Chief Financial Offi cer, +46 155 22 10 32 or +46 709 67 70 32 (cell phone).
See also www.studsvik.se
Consolidated Income Statement
Amounts in SEK million
| July– | July– | January– | January– | ||
|---|---|---|---|---|---|
| September 2007 | September 2006 | September 2007 | September 2006 | Full Year 2006 | |
| Net sales | 325.1 | 321.3 | 944.1 | 890.4 | 1,219.6 |
| Cost of services sold | –254.7 | –241.4 | –717.0 | –670.9 | –906.5 |
| Gross profi t | 70.4 | 79.9 | 227.1 | 219.5 | 313.1 |
| Other operating income | 4.8 | –0.4 | 31.9 | 1.0 | 14.3 |
| Selling and marketing expenses | –17.5 | –12.5 | –44.8 | –33.2 | –44.6 |
| Administrative expenses | –38.6 | –33.8 | –131.3 | –107.9 | –164.2 |
| Research and development costs | –5.8 | –10.2 | –28.7 | –29.3 | –39.8 |
| Other operating expenses | –4.5 | 0.0 | –7.4 | 0.0 | –7.5 |
| Operating profi t | 8.8 | 23.0 | 46.8 | 50.1 | 71.3 |
| Financial income | 2.4 | –2.2 | 7.5 | 17.2 | 23.1 |
| Financial expenses | –6.6 | –3.5 | –18.4 | –34.4 | –37.3 |
| Profi t after fi nancial items | 4.6 | 17.3 | 35.9 | 32.9 | 57.1 |
| Income tax1) | 0.0 | –5.8 | –1.7 | –11.4 | –22.3 |
| Profi t for the period | 4.6 | 11.5 | 34.2 | 21.5 | 34.8 |
| Attributable to | ' | ||||
| – Parent company's shareholders | 4.7 | 11.5 | 34.3 | 21.5 | 34.8 |
| – Minority interest | –0.1 | – | –0.1 | – | – |
| Earnings per share, SEK | |||||
| – before dilution | 0.58 | 1.40 | 4.18 | 2.62 | 4.24 |
| – after dilution | 0.58 | 1.40 | 4.18 | 2.62 | 4.24 |
1) The Group's deferred tax liabilities have been revalued in response to a reduction in corporation tax in Germany from 2008. The revaluation has been reported in the Group's third quarter tax expense. The low tax rate for the period January to September is mainly explained by the fact that the reported pre-tax earnings include non taxable capital gains from the sale of Studsvik Stensand.
Condensed Consolidated Balance Sheet
| Amounts in SEK million | |||
|---|---|---|---|
| September 2007 | September 2006 | December 2006 | |
| Assets | |||
| Goodwill | 308.1 | 319.1 | 304.7 |
| Other intangible fi xed assets | 54.5 | 55.0 | 50.8 |
| Tangible fi xed assets | 395.3 | 414.1 | 400.7 |
| Financial fi xed assets | 64.8 | 106.8 | 72.1 |
| Total fi xed assets | 822.7 | 895.0 | 828.3 |
| Inventories | 8.8 | 7.5 | 6.9 |
| Receivables – trade | 202.3 | 198.8 | 189.2 |
| Other current receivables | 106.6 | 125.1 | 85.4 |
| Liquid assets | 150.6 | 161.0 | 247.6 |
| Total current assets | 468.3 | 492.4 | 529.1 |
| Total assets | 1,291.0 | 1,387.4 | 1,357.4 |
| Equity and liabilities | |||
| Equity attributable to parent company's shareholders | 556.8 | 567.1 | 558.7 |
| Minority interest | 2.3 | – | – |
| Borrowings | 285.6 | 367.7 | 307.4 |
| Provisions | 94.5 | 179.3 | 105.7 |
| Other non-current liabilities | 4.0 | 4.1 | 4.0 |
| Total non-current liabilities | 384.1 | 551.1 | 417.1 |
| Trade payables | 48.5 | 50.4 | 41.8 |
| Borrowings | 35.8 | 4.5 | 39.8 |
| Other current liabilities | 263.5 | 214.3 | 300.0 |
| Total current liabilities | 347.8 | 269.2 | 381.6 |
| Total equity and liabilities | 1,291.0 | 1,387.4 | 1,357.4 |
| Pledged assets | 169.4 | 160.5 | 151.9 |
| Contingent liabilities | 33.5 | 37.5 | 35.3 |
Changes in Equity
| Amounts in SEK million | |||
|---|---|---|---|
| September 2007 | September 2006 | December 2006 | |
| Equity at the beginning of the period | 558.7 | 566.6 | 566.6 |
| Dividend to shareholders | –16.4 | –16.4 | –16.4 |
| Net result for the period | 34.3 | 21.5 | 34.8 |
| Change in translation differences | –17.5 | –4.6 | –26.3 |
| Equity at the end of the period | 559.1 | 567.1 | 558.7 |
Condensed Consolidated Cash Flow Statement
Amounts in SEK million
| January– | January– | ||
|---|---|---|---|
| September 2007 | September 2006 | Full Year 2006 | |
| Operating activities | |||
| Operating profi t | 46.8 | 50.1 | 71.3 |
| Depreciations | 46.1 | 40.1 | 53.8 |
| Other non-cash items | –24.5 | 7.3 | –3.1 |
| 68.4 | 97.5 | 122.0 | |
| Financial items, net | –10.9 | –9.0 | –14.1 |
| Income tax paid | –20.5 | –20.5 | –2.4 |
| Cash fl ow from operating activities before | |||
| changes in working capital | 37.0 | 68.0 | 105.5 |
| Changes in working capital | –51.1 | –56.1 | –1.4 |
| Cash fl ow from operating activities | –14.1 | 11.9 | 104.1 |
| Investing activities | |||
| Investments | –97.0 | –326.6 | –344.7 |
| Other changes from investing activities | 45.8 | 5.1 | 19.6 |
| Cash fl ow from investing activities | –51.2 | –321.5 | –325.1 |
| Financing activities | |||
| Change, borrowings | –15.9 | 164.5 | 168.2 |
| Dividend to shareholders | –16.4 | –16.2 | –16.4 |
| Cash fl ow from fi nancing activities | –32.3 | 148.3 | 151.8 |
| Change in liquid assets | –97.6 | –161.3 | –69.2 |
| Liquid assets at the beginning of the year | 247.6 | 323.4 | 323.4 |
| Translation difference in liquid assets | 0.6 | –1.1 | –6.6 |
| Translation difference | – | – | – |
| Liquid assets at the end of the period | 150.6 | 161.0 | 247.6 |
Company Acquisitions
On August 1 Studsvik AB acquired 100 per cent of the shares in Alpha Engineering, operating in the United Kingdom. The acquired operations contributed net sales of SEK 5.8 million and an operating profi t of SEK 0.5 million in the third quarter. Amortization of intangible assets reduces earnings by SEK 0.5 million. If the operations had been included from the beginning of the year the Group's net sales for the period of January to September would have been SEK 971 million and the operating profi t would have been SEK 50 million.
Acquired Net Assets and Goodwill, amounts in SEK million
| 34.4 |
|---|
| 0.2 |
| 34.6 |
| –8.5 |
| 24.3 |
| 3.0 |
| –1.2 |
Goodwill refers to the profi tability potential of the acquired operations and to the synergy effects of the operations with other parts of the Group which are important to its growth. Intangible assets consist of order stock which is amortized over 12 months.
Financial Ratios for the Group
| Amounts in SEK million | ||||||||
|---|---|---|---|---|---|---|---|---|
| January– | January– | ||
|---|---|---|---|
| September 2007 | September 2006 | Full Year 2006 | |
| Operating profi t | |||
| Operating profi t before depreciation | 92.9 | 90.2 | 125.1 |
| Margins | |||
| Operating margin before depreciation, % | 9.8 | 10.1 | 10.3 |
| Operating margin, % | 5.0 | 5.6 | 5.8 |
| Profi t margin, % | 3.8 | 3.7 | 4.7 |
| Profi tability | |||
| Return on operating capital, % | 9.0 | 11.0 | 13.0 |
| Return on capital employed, % | 8.1 | 10.6 | 11.3 |
| Return on equity, % | 8.2 | 5.1 | 6.2 |
| Capital structure | |||
| Operating capital | 730.0 | 778.4 | 658.3 |
| Capital employed | 880.6 | 939.3 | 905.8 |
| Equity | 559.1 | 567.1 | 558.7 |
| Interest-bearing net debt | 190.9 | 211.3 | 99.6 |
| Net debt-equity ratio | 0.3 | 0.4 | 0.2 |
| Interest cover ratio | 3.0 | 2.0 | 2.5 |
| Equity-assets ratio, % | 43.3 | 40.9 | 41.2 |
| Cash fl ow | |||
| Self fi nancing ratio | neg | – | 0.3 |
| Investments | 101.9 | 326.6 | 344.7 |
| Employees | |||
| Average number of employees | 1,147 | 1,330 | 1,279 |
| Net sales per employee | 1.1 | 0.9 | 1.0 |
| July– | July– | January– | January– | |
|---|---|---|---|---|
| September 2007 | September 2006 | September 2007 | September 2006 | Full Year 2006 |
| 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 |
| 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 | 8,218,611 |
| 0.58 | 1.40 | 4.18 | 2.62 | 4.24 |
| 0.58 | 1.40 | 4.18 | 2.62 | 4.24 |
| 68.30 | 69.00 | 68.30 | 69.00 | 67.97 |
Net Sales per Geographical Segment
Amounts in SEK million
| July– | July– | January– | January– | ||
|---|---|---|---|---|---|
| September 2007 | September 2006 | September 2007 | September 2006 | Full Year 2006 | |
| Sweden | 30.7 | 88.3 | 126.1 | 244.7 | 336.5 |
| Europe, excluding Sweden | 172.9 | 109.6 | 425.8 | 316.7 | 424.4 |
| North America | 113.8 | 118.6 | 371.2 | 306.9 | 433.2 |
| Asia | 5.8 | 3.9 | 18.7 | 17.1 | 20.3 |
| Other markets | 1.9 | 0.9 | 2.3 | 5.0 | 5.2 |
| Total | 325.1 | 321.3 | 944.1 | 890.4 | 1,219.6 |
Financial Data per SBA
| Amounts in SEK million | July– | July– | January– | January– | |
|---|---|---|---|---|---|
| September 2007 | September 2006 | September 2007 | September 2006 | Full Year 2006 | |
| Waste Treatment | |||||
| Net sales | 140.2 | 147.7 | 451.2 | 359.7 | 508.7 |
| Operating profi t | 5.0 | 12.6 | 27.1 | 27.9 | 33.6 |
| Assets | 788.0 | 816.6 | 788.0 | 816.6 | 830.2 |
| Liabilities | 463.4 | 685.9 | 463.4 | 685.9 | 439.9 |
| Investments | 12.0 | 5.9 | 44.7 | 311.9 | 321.2 |
| Depreciation and amortization | 8.9 | 10.2 | 31.3 | 28.3 | 38.3 |
| Average number of employees | 328 | 269 | 322 | 292 | 294 |
| Decommissioning | |||||
| Net sales | 74.7 | 47.7 | 192.0 | 140.2 | 189.0 |
| Operating profi t | 4.6 | 5.6 | 12.0 | 11.6 | 11.9 |
| Assets | 152.0 | 123.0 | 152.0 | 123.0 | 114.7 |
| Liabilities | 57.4 | 52.6 | 57.4 | 52.6 | 63.3 |
| Investments | 36.2 | 1.4 | 37.0 | 4.0 | 4.0 |
| Depreciation and amortization | 1.2 | 0.3 | 2.1 | 2.8 | 3.2 |
| Average number of employees | 356 | 347 | 337 | 348 | 321 |
| Operating Effi ciency | |||||
| Net sales | 33.3 | 31.3 | 125.8 | 124.0 | 167.7 |
| Operating profi t | 2.2 | 3.1 | 5.6 | 18.7 | 36.4 |
| Assets | 162.3 | 253.4 | 162.3 | 253.4 | 211.0 |
| Liabilities | 101.1 | 158.7 | 101.1 | 158.7 | 193.2 |
| Investments | 0.4 | 1.7 | 4.3 | 5.9 | 10.3 |
| Depreciation and amortization | 2.1 | 3.3 | 6.1 | 5.9 | 7.4 |
| Average number of employees | 120 | 112 | 117 | 116 | 114 |
| Service and Maintenance | |||||
| Net sales | 61.9 | 80.6 | 128.8 | 201.5 | 268.8 |
| Operating profi t | 3.3 | 8.8 | 9.8 | 12.3 | 17.3 |
| Assets | 135.9 | 185.6 | 135.9 | 185.6 | 179.8 |
| Liabilities | 141.0 | 183.6 | 141.0 | 183.6 | 165.6 |
| Investments | –1.0 | 1.3 | 12.0 | 2.0 | 2.6 |
| Depreciation and amortization | 3.5 | 0.5 | 4.3 | 1.6 | 2.2 |
| Average number of employees | 295 | 622 | 288 | 500 | 473 |
| Other1) Net sales |
27.5 | 31.5 | 86.6 | 112.4 | 143.9 |
| Operating profi t | –6.3 | –7.1 | –30.9 | –20.4 | –27.9 |
| Assets | 410.7 | 693.8 | 410.7 | 693.8 | 487.0 |
| Liabilities | 302.6 | 410.3 | 302.6 | 410.3 | 388.4 |
| Investments | 1.2 | 0.4 | 3.9 | 2.8 | 6.6 |
| Depreciation and amortization | 0.8 | 0.3 | 2.3 | 1.6 | 2.7 |
| Average number of employees | 80 | 80 | 83 | 74 | 77 |
| Group eliminations | |||||
| Net sales | –12.5 | –17.5 | –40.3 | –47.4 | –58.5 |
| Operating profi t | 0.0 | – | 23.22) | – | – |
| Assets | –357.8 | –685.0 | –357.8 | –685.0 | –465.3 |
| Liabilities | –333.5 | –670.8 | –333.5 | –670.8 | –451.7 |
| Investments | – | – | – | – | – |
| Depreciation and amortization | – | – | – | – | – |
1) Other operations mainly refer to the Parent Company and AB SVAFO. AB SVAFO is responsible for management of older state-owned research waste and decommissioining of facilities related to previous state property operations. The costs of the operations are covered by the Nuclear Waste Fund.
2) Operating profi t includes the capital gain on the sale of the shares in Studsvik Stensand AB, SEK 23.3 million.
Five-year Review1)
Amounts in SEK million
The fi nancial information in this section is based on Studsvik's consolidated accounts for the fi nancial years of 2002 to 2006. Results for companies and activities that have been disposed of are included up to the date of the disposal, while the results of acquired companies have been included from the date of acquisition. In 2005, two SBAs were discontinued. The income statements for 2005 and 2004 have been adjusted for this reason. These activities are reported in the income statements as "Profi t from discontinued operations". Balance sheets and cash fl ow statements have not been adjusted. The fi nancial fi gures and ratios which have been completely or partially derived from the income statements have been adjusted.
| Condensed Income Statements | Jan–Sep | Jan–Sep | |||||
|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |
| Net sales | 944.1 | 890.4 | 1,219.6 | 1,088.3 | 1,025.4 | 1,113.8 | 1,002.3 |
| Cost of services sold | –717.0 | –670.9 | –906.5 | –802.9 | –839.3 | –842.5 | –773.5 |
| Gross profi t | 227.1 | 219.5 | 313.1 | 285.4 | 186.1 | 271.3 | 228.8 |
| Other operating income | 31.9 | 1.0 | 14.3 | 19.8 | 1.7 | 1.5 | 0.4 |
| Selling expenses | –44.8 | –33.2 | –44.6 | –41.9 | –36.6 | –34.8 | –40.5 |
| Administrative expenses | –131.3 | –107.9 | –164.2 | –146.4 | –143.4 | –141.2 | –139.5 |
| Research and development costs | –28.7 | –29.3 | –39.8 | –35.5 | –34.6 | –42.1 | –46.3 |
| Other operating expenses | –7.4 | 0.0 | –7.5 | –2.6 | –0.1 | –0.6 | –2.4 |
| Result from participations in associated companies | – | – | – | – | 2.6 | 7.3 | 2.3 |
| Operating profi t | 46.8 | 50.1 | 71.3 | 78.8 | –24.3 | 61.4 | 2.8 |
| Financial income | 7.5 | 17.2 | 23.1 | 8.5 | 7.6 | 6.8 | 6.6 |
| Financial expense | –18.4 | –34.4 | –37.3 | –11.1 | –15.1 | –15.9 | –10.5 |
| Profi t after fi nancial items | 35.9 | 32.9 | 57.1 | 76.2 | –31.8 | 52.3 | –1.1 |
| Income tax | –1.7 | –11.4 | –22.3 | –28.7 | 56.1 | –20.4 | –7.5 |
| Profi t from discontinued operations | – | – | – | 13.6 | –90.8 | – | – |
| Profi t for the period | 34.2 | 21.5 | 34.8 | 61.1 | –66.5 | 31.9 | –8.6 |
| Attributable to | |||||||
| – Parent company's shareholders | 34.3 | 21.5 | 34.8 | 61.1 | –66.5 | 31.9 | –8.6 |
| – Minority interest | –0.1 | – | – | – | – | – | – |
| Condensed Balance Sheets | September | September | |||||
|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |
| Assets | |||||||
| Goodwill | 308.1 | 319.1 | 304.7 | 127.4 | 120.7 | 123.4 | 77.2 |
| Other intangible non-current assets | 54.5 | 55.0 | 50.8 | 5.0 | 7.4 | 9.8 | 11.5 |
| Property, plant and equipment | 395.3 | 414.1 | 400.7 | 372.0 | 331.8 | 475.5 | 598.6 |
| Financial non-current assets | 64.8 | 106.8 | 72.1 | 99.0 | 81.5 | 31.3 | 31.5 |
| Total non-current assets | 822.7 | 895.0 | 828.3 | 603.4 | 541.4 | 640.0 | 718.8 |
| Inventories | 8.8 | 7.5 | 6.9 | 10.4 | 10.4 | 16.8 | 9.5 |
| Receivables – trade | 202.3 | 198.8 | 189.2 | 167.3 | 139.9 | 163.6 | 155.2 |
| Other current recievables | 106.6 | 125.1 | 85.4 | 78.8 | 141.2 | 62.1 | 57.7 |
| Liquid assets | 150.6 | 161.0 | 247.6 | 323.4 | 319.2 | 299.9 | 120.5 |
| Total current assets | 468.3 | 492.4 | 529.1 | 579.9 | 610.7 | 542.4 | 342.9 |
| Total assets | 1,291.0 | 1,387.4 | 1,357.4 | 1,183.3 | 1,152.1 | 1,182.4 | 1,061.7 |
| Equity and liabilities Equity attributable to parent company's shareholders |
556.8 | 567.1 | 558.7 | 566.6 | 443.2 | 531.6 | 466.5 |
| Minority interest | 2.3 | – | – | – | – | – | – |
| Borrowings | 285.6 | 367.7 | 307.4 | 192.8 | 186.2 | 213.9 | 189.0 |
| Provisions | 94.5 | 179.3 | 105.7 | 165.8 | 251.9 | 162.7 | 160.7 |
| Other non-current liablities | 4.0 | 4.1 | 4.0 | 6.4 | 0.1 | 9.2 | – |
| Total non-current liabilities | 384.1 | 551.1 | 417.1 | 365.0 | 438.2 | 385.8 | 349.7 |
| Trade payables | 48.5 | 50.4 | 41.8 | 54.0 | 44.4 | 40.7 | 46.2 |
| Borrowings | 35.8 | 4.5 | 39.8 | 0.1 | 7.8 | 4.9 | 10.9 |
| Other current liabilities | 263.5 | 214.3 | 300.0 | 197.6 | 218.5 | 219.4 | 188.4 |
| Total current liabilities | 347.8 | 269.2 | 381.6 | 251.7 | 270.7 | 265.0 | 245.5 |
1) 2004-2006 are reported in accordance with IFRS.
| Condensed Cash Flow Statements | January– September |
January– September |
|||||
|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |
| Operating profi t | 46.8 | 50.1 | 71.3 | 92.4 | –119.7 | 61.4 | 2.8 |
| Write-downs added back | 46.1 | 40.1 | 53.8 | 47.1 | 78.3 | 95.3 | 95.6 |
| Other items not affecting liquidity | –24.5 | 7.3 | –3.1 | –6.5 | 146.4 | –0.2 | –37.6 |
| 68.4 | 97.5 | 122.0 | 133.0 | 105.0 | 156.5 | 60.8 | |
| Financial items, net | –10.9 | –9.0 | –14.1 | –4.8 | –8.0 | –9.6 | –3.9 |
| Income tax | –20.5 | –20.5 | –2.4 | –28.2 | –12.5 | –17.3 | –4.4 |
| Cash fl ow before changes in working capital | 37.0 | 68.0 | 105.5 | 100.0 | 84.5 | 129.6 | 52.5 |
| Changes in working capital | –51.1 | –56.1 | –1.4 | –82.0 | 19.9 | 28.5 | –46.6 |
| Cash fl ow before investments | –14.1 | 11.9 | 104.1 | 18.0 | 104.4 | 158.1 | 5.9 |
| Investments | –97.0 | –326.6 | –344.7 | –45.0 | –52.4 | –119.6 | –53.2 |
| Cash fl ow after investments | –111.1 | –314.7 | –240.6 | –27.0 | 52.0 | 38.5 | –47.3 |
| Financial Figures and Ratios | January– | January– | |||||
|---|---|---|---|---|---|---|---|
| September | September | ||||||
| 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |
| Margins | |||||||
| Operating margin before depreciation, % | 9.8 | 10.1 | 10.3 | 11.6 | 4.7 | 14.1 | 9.8 |
| Operating margin, % | 5.0 | 5.6 | 5.8 | 7.2 | neg | 5.5 | 0.3 |
| Profi t margin, % | 8.2 | 3.7 | 4.7 | 7.0 | neg | 4.7 | neg |
| Profi tability | |||||||
| Return on operating capital, % | 9.0 | 11.0 | 13.0 | 20.9 | neg | 12.3 | 0.5 |
| Return on capital employed, % | 8.1 | 10.6 | 11.3 | 12.5 | neg | 9.6 | 1.2 |
| Return on equity, % | 8.2 | 5.1 | 6.2 | 12.1 | neg | 6.4 | neg |
| Capital structure | |||||||
| Operating capital | 730.0 | 778.4 | 658.3 | 436.2 | 318.0 | 450.4 | 545.8 |
| Capital employed | 880.6 | 939.3 | 905.8 | 759.5 | 637.2 | 750.4 | 666.3 |
| Equity, SEK million | 559.1 | 567.1 | 558.7 | 566.6 | 443.4 | 531.3 | 466.2 |
| Interest-bearing net debt | 190.9 | 211.3 | 99.6 | –130.4 | –125.2 | –81.1 | 79.4 |
| Net debt-equity ratio | 0.3 | 0.4 | 0.2 | –0.2 | –0.3 | –0.2 | 0.2 |
| Interest cover ratio | 3.0 | 2.0 | 2.5 | 7.9 | neg | 4.3 | 0.9 |
| Equity-assets ratio, % | 43.3 | 40.9 | 41.2 | 47.9 | 38.5 | 44.9 | 43.9 |
| Cash fl ow | |||||||
| Self fi nancing ratio | neg | – | 0.3 | 0.4 | 2.1 | 1.3 | 0.1 |
| Investments | 101.9 | 326.6 | 344.7 | 45.0 | 52.4 | 119.6 | 53.2 |
| Employees | |||||||
| Average number of employees | 1,147 | 1,330 | 1,279 | 1,278 | 1,353 | 1,313 | 1,128 |
| Net sales per employee | 1.1 | 0.9 | 1.0 | 0.9 | 0.8 | 0.8 | 0.9 |
Quarterly Review
| Amounts in SEK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3/07 | Q2/07 | Q1/07 | Q4/06 | Q3/06 | Q2/06 | Q1/06 | Q4/051) | Q3/051) | Q2/051) | Q1/051) | |
| Net sales | 325.1 | 345.8 | 273.2 | 329.2 | 321.3 | 317.5 | 251.6 | 298.1 | 265.8 | 286.6 | 235.7 |
| Operating expenses | –316.3 | –330.0 | –251.0 | –308.0 | –298.3 | –290.8 | –251.2 | –282.6 | –249.1 | –261.8 | –215.8 |
| Operating profi t | 8.8 | 15.8 | 22.2 | 21.2 | 23.0 | 26.7 | 0.4 | 15.5 | 16.7 | 24.8 | 19.9 |
| Financial items, net | –4.2 | –3.0 | –3.7 | 3.0 | –5.7 | –6.4 | –5.2 | –3.0 | 1.7 | 0.1 | –1.2 |
| Profi t after fi nancial items | 4.6 | 12.8 | 18.5 | 24.2 | 17.3 | 20.3 | –4.8 | 12.5 | 18.4 | 24.9 | 18.7 |
1) Refers to profi t from continuing operations.
Parent Company Income Statement
Amounts in SEK million
Amounts i SEK million
| July– | July– | January– | January– | ||
|---|---|---|---|---|---|
| September 2007 | September 2006 | September 2007 | September 2006 | Full Year 2006 | |
| Net sales | 1.4 | 2.0 | 4.1 | 6.0 | 8.0 |
| Cost of services sold | –1.1 | –1.1 | –3.7 | –4.9 | –6.2 |
| Gross profi t | 0.3 | 0.9 | 0.4 | 1.1 | 1.8 |
| Other operating costs | –6.3 | –7.8 | –30.6 | –21.0 | –29.1 |
| Operating profi t | –6.0 | –6.9 | –30.2 | –19.9 | –27.3 |
| Financial net | –0.6 | 1.5 | 35.9 | 18.3 | 26.0 |
| Profi t before tax | –6.6 | –5.4 | 5.7 | –1.6 | –1.3 |
| Appropriations | 0.0 | 0.0 | 0.0 | 0.0 | 28.5 |
| Income tax | 1.8 | –2.1 | 9.4 | 2.0 | –0.9 |
| Profi t for the period | –4.8 | –7.5 | 15.1 | 0.4 | 26.3 |
Parent Company Balance Sheet
| September 2007 | September 2006 | December 2006 | |
|---|---|---|---|
| Assets | |||
| Tangible fi xed assets | 1.8 | 1.2 | 2.1 |
| Financial fi xed assets | 918.1 | 1 025.5 | 977.8 |
| Total fi xed assets | 919.9 | 1 026.7 | 979.9 |
| Current assets | 73.3 | 46.0 | 56.3 |
| Liquid assets | 89.9 | 86.1 | 149.7 |
| Total current assets | 163.2 | 132.1 | 206.0 |
| Total assets | 1,083.1 | 1,158.8 | 1,185.9 |
| Equity and liabilities | |||
| Equity | 813.2 | 757.4 | 814.5 |
| Untaxed reserves | 7.2 | 35.7 | 7.2 |
| Non-current liabilities | 209.3 | 271.2 | 237.2 |
| Current liabilities | 53.4 | 94.5 | 127.0 |
| Total liabilities | 262.7 | 365.7 | 364.2 |
| Total equity and liabilities | 1,083.1 | 1,158.8 | 1,185.9 |
| Number | |
|---|---|
| Share, % | |
| 19.3 | |
| 15.6 | |
| 714,561 | 8.7 |
| 481,616 | 5.9 |
| 364,118 | 4.4 |
| 350,000 | 4.3 |
| 194,292 | 2.4 |
| 184,800 | 2.2 |
| 140,979 | 1.7 |
| 133,550 | 1.6 |
| 66.1 | |
| 33.9 | |
| 100.0 | |
| of shares 1,584,012 1,283,492 5,431,420 2,787,191 8,218,611 |
The Studsvik Share
In the third quarter the share price varied between a high of SEK 227.50 on July 20 and a low of SEK 187.50 on September 28. The opening price was SEK 253 at the beginning of the year and the closing price on September 30 was SEK 187.50. During the third quarter, 0.27 million shares were traded
Facts about Studsvik
Studsvik is a leading service supplier to the international nuclear industry. The company has 60 years experience of nuclear technology and radio logical services. Studsvik addresses a market in strong growth with specialized services in four Strategic Business Areas: Waste Treatment, Decommissioning, Operating Effi ciency and Service and Maintenance. Studsvik has 1,200 employees in 7 countries and the company's shares are listed on the OMX Nordic Exchange Stockholm AB, MidCap.
Studsvik AB
P.O. Box 556, SE-611 10 Nyköping, Sweden Phone +46 155 22 10 00 Telefax +46 155 26 30 00 E-mail [email protected] www.studsvik.com